Sub-prime lending is making a come-back in some areas due, as before, to government pressure to lend to people unqualified to borrow.
Why don’t some of these people at the non-profits and the government put their OWN MONEY at risk here. If it makes sense to lend money in these areas, they should be happy to do so – they think there is a good reason to loan there and a good rate of return, GO AHEAD.
The question is not skin color, the question is ability to service the loan. If we want a repeat of the sub-prime crisis, repeat the process and force people to loan when it is not safe to do so.
The choice will be: lend less everywhere or lend to people who won’t be able to pay back the loan.