“(…) Lenders made more money available for home-buying in the 1990s. More people bought houses, increasing their prices. This boosted the value of the collateral on banks’ balance sheets, encouraging them to lend more. Prices rose further, prompting more lending and a relaxation of underwriting standards, and so on. (…)
Regulators need to regain the control they happily ceded in the 1980s, particularly over excessive borrowing. The idea that risk management can be left to the moneymen is an “aberration”. After three decades of stellar growth, the financial-services industry needs to shrink and become less profitable.(…)”
O artigo da Economist com George Soros.