Monday, August 20, 2007

Neutron Loans

All of the old-timers knew that subprime mortgages were what we called neutron loans -- they killed the people and left the houses. The deals made in 2005 and 2006 were going to run into trouble because the credit pendulum at the time was stuck at easy.

-- Louis S. Barnes, a partner at Boulder West, a mortgage banking firm, NY Times, 8/19/07

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