The sub-prime crisis in one sentence

November 28th, 2007

From a very funny column by Michael Lewis:

This is what happens when you lend money to poor people.

As always, with these things, there’s a bit of a grain of truth in there. Especially in this bit:

I trusted these people to get their teams of lawyers to vet anything before they signed it. Turns out, if you’re poor, you don’t need to pay lawyers. You don’t like the deal you just wave your hands in the air and moan about how poor you are. Then you default.