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Comment: Re: is anyone really surprised here (Score 1) 195

by JonathanR (#48008225) Attached to: The Secret Goldman Sachs Tapes

Prices are set at the margin, so any new and additional borrowed capital chasing the existing market-share will catalyze a boom in prices.

Where the banks failed is in assessment of borrower's capacity to service. But rising prices combined with the government-sponsored protection that is the mortgage, meant that moral hazard was the order of the day.

Never test for an error condition you don't know how to handle. -- Steinbach

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