https://alexberenson.substack.com/p/if-you-are-a-vaccine-company-executive
Remember NINJA loans?
NINJA stood for “No income, no job/assets.” Back in the mid-aughts, when the banks and not the regulators were the ones going crazy and setting the financial system on fire with free money, they were all the rage.
I remember hearing ads for them in 2006 and 2007 and thinking, this has to be a bait and switch. You cannot walk into Your Friendly MegaBank and walk out with a few hundred grand for a house with no proof you even have a job! A job seems pretty basic.
But you could. And people did. Lots of people.
Underlying this madness was a model, naturally. American housing prices had never collapsed nationally and simultaneously since at least the Depression. Therefore the models that the banks and mortgage originators used said they never would.
Therefore on a national basis the collateral – the houses – underlying the mortgages would always be fine, even if the borrowers couldn’t repay them. The lenders just needed to be in different markets to be geographically protected. Besides, the bankers were all reselling the loans and offloading the risk. They got paid up front, whether the loans were paid back or not.
It was a very good business.
Until it went bad.