Quotes About Lending

Why the support for subprime lending?

might reduce the stigma of borrowing from the Fed.

they were growing reluctant to lend,

Although FOMC members, hawks and doves alike, agreed it was time to wind down our emergency lending programs, they differed on when to begin rolling back our accommodative monetary policy.

to support the flow of credit to households and businesses.

If not interest rates or monetary policy, then what? Most research on the origins of the bubble has focused on three factors: mass psychology; financial innovations that reduced the incentive for careful lending;

each lender was typically reluctant to offer a modification without concessions from the other. Servicers

Remember that credit is money.

If you would know the worth of money, go and try to borrow some.

If you would know the value of money, go and try to borrow some; for He that goes a borrowing goes a sorrowing, as Poor Richard says;

If you would know the value of money, go and try to borrow some; for he that goes a borrowing goes a sorrowing, as Poor Richard says; and indeed so does he that lends to such people, when he goes to get it in again.

If you would know the value of money, go and try to borrow some.

Lend money to an enemy and you will gain him, to a friend and you will lose him.

A contingent bailout policy - implicit or explicit - must be coupled with some regulation of what banks can and cannot do. For example, a ban on lending to uncreditworthy customers might well make sense.

Small lending institutions lack the capability of their larger counterparts to hire the additional manpower necessary to deal with the hundreds of additional regulations created by Dodd-Frank.

A banker who is allowed to borrow money at X and loan it out at X plus Y will just go crazy and do too much of it if the civilization doesn't have rules that prevent it.

The FHA literally drew up the redlining map and then basically distributed - I'm sorry, the Home Owners' Loan Corporation actually did it, and then distributed to banks who used that as policy to determine how they would lend and who they would lend to. The racism in the system was pervasive and total.

Let us lend cheerfully, for the time is pretty sure to come when we will wish to borrow.

In short, the explosion in sub-prime lending was a thoroughly top–down, political project, mandated by Congress, implemented by government-sponsored enterprises, enforced by the law, encouraged by the president and monitored by pressure groups.

In short, the explosion in sub-prime lending was a thoroughly top–down, political project, mandated by Congress, implemented by government-sponsored enterprises, enforced by the law, encouraged by the president and monitored by pressure groups. Remember this when you hear people blame the free market for the excesses of the sub-prime bubble.

As we sat in the afternoon sun, he gave me a quick tutorial on the burgeoning subprime mortgage market. Whereas banks had once typically held the mortgage loans they made in their own portfolios, a huge percentage of mortgages were now bundled and sold as securities on Wall Street. Since banks could now off-load their risk that any particular borrower might default on their loan, this "securitization" of mortgages had led banks to steadily loosen their lending standards.

Overborrowing or overlending? Lenders encourage indebtedness because it is profitable. Developing country governments are sometimes even pressured to overborrow ... Even without corruption, it is easy to be influenced by Western businessmen and financiers ... Countries that aren't sure that borrowing is worth the rist are told how important it is to establis a credit rating: borrow even if you really don't need the money.

Remember that credit is money.

Let me remind you that credit is the lifeblood of business, the lifeblood of prices and jobs.