Subprime mortgage bust result of perfect storm of greed and stupidity, analysts say
By ALAN J. ORTBALS
The subprime mortgage crisis that's now impacting the country is the result of a combination of greed and stupidity,
according to local industry analysts. Borrowers, lenders, mortgage brokers, appraisers, investment bankers and investors -
all trying to make fast money - were speculating that the housing boom would never end.
"Probably beneath it all," said
Bart Solon, president and chief operating officer of Partners Bank, "was greed and stupidity - stupidity on both ends of the
spectrum. Stupidity on the part of the person who got the loan, and stupidity on the part of the investor who was the end
buyer of the paper."
The word subprime refers to the borrower and means that the
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