It’s the flexible lending standards, stupid

Published June 16, 2009 4:00am ET



Part three of a three-part series

Monday: Mark Thornton: “The housing bubble was real and so were the consequences.”
Yesterday: Lawrence J. White: “How Fannie and Freddie flubbed the free market”
Today: Stan J. Liebowitz: “It’s the Flexible Lending Standards, Stupid”

How did it come about that our financial system allowed bad loans to be made, condoned, and even celebrated?

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