For those of us who didn’t catch it, this is what happened with the 2008-09 recession. In a nutshell, giving people mortgages became so profitable and facilitated so much economic growth (including by increasing property values) that the people approving and rejecting mortgages became corrupted and pursued short-term incentives to an insane degree in order to be competitive, approving mortgages that were unlikely to be paid back e.g. letting people buy multiple houses.
This was a major feature of US history, and I’m interested if people have thoughts on the extent to which dark matter might have prevented the government from responding until it was too late (it’s a hard domain to penetrate because of how many people were correctly anticipating that they would be passing the blame).
For those of us who didn’t catch it, this is what happened with the 2008-09 recession. In a nutshell, giving people mortgages became so profitable and facilitated so much economic growth (including by increasing property values) that the people approving and rejecting mortgages became corrupted and pursued short-term incentives to an insane degree in order to be competitive, approving mortgages that were unlikely to be paid back e.g. letting people buy multiple houses.
This was a major feature of US history, and I’m interested if people have thoughts on the extent to which dark matter might have prevented the government from responding until it was too late (it’s a hard domain to penetrate because of how many people were correctly anticipating that they would be passing the blame).