[quote=patb]I suspect that the banks aren’t writing new mortgages
unless they are just darned sure they are
going to get paid off.[/quote]
Banks are only making loans that they can re-sell to the govt (FHA, FNM, etc). The govt is buying without regard to responsible minimum downpayments etc., and is making virtually unlimited amounts available.
In other words, what banks are doing now has nothing to do with the risks – the risks are being dumped on future taxpayers.
