James Kourlas

April 12, 2012 -- Two very different narratives attempt to explain the massive housing boom and subsequent crash. The first is a tale of corruption by the profit motive. In this story banks, investors, and homeowners dazzled by the golden opportunities in the housing market threw caution to the wind and leveraged up. The second narrative is a tale of corruption in the name of compassion. Government officials, government sponsored enterprises (GSEs), and willing bankers sought to expand home ownership to those who failed to meet traditional sound lending standards.