--- title: "Meaning & Key Takeaway of: After the risky mortgage-lending…" description: "\"After the risky mortgage-lending practices fostered by government intervention led to massive defaults and foreclosures that caused financial instituti..." image: "https://sms4smile.com/quotes/i/6b2/thomas-sowell-247_changed_after-the-risky-mortgage-lending-practic_680430.jpg" --- # After the risky mortgage-lending practices fostered by… ![“After the risky mortgage-lending practices fostered by government intervention led to massive defaults and foreclosures that caused financial institutions to collapse or be bailed out, Congressman Frank changed his tune completely.” quote by Thomas Sowell](https://sms4smile.com/quotes/i/6b2/thomas-sowell-247_changed_after-the-risky-mortgage-lending-practic_680430.jpg) [Download](https://sms4smile.com/quotes/i/6b2/thomas-sowell-247_changed_after-the-risky-mortgage-lending-practic_680430.jpg) [Open image](https://sms4smile.com/quotes/i/6b2/thomas-sowell-247_changed_after-the-risky-mortgage-lending-practic_680430.jpg) > “After the risky mortgage-lending practices fostered by government intervention led to massive defaults and foreclosures that caused financial institutions to collapse or be bailed out, Congressman Frank changed his tune completely.” [Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Government-backed risky lending caused a crisis, leading to a reversal of political stance when consequences became evident. **In simple terms:** Risky lending led to crisis and policy reversal. Key Takeaway Policy should be based on outcomes, not ideology. Themes finance government intervention policy reversal Mood cautious analytical Type political economic When to use this quote - banking reform - legislative oversight - public education - risk assessment Key Concepts economic cycles regulation political behavior Questions to Reflect On - What safeguards could prevent similar crises? - How should policymakers respond when policies fail? A Different Perspective Complex crises have multiple causes; blame cannot be placed on a single factor. ★ ★ ★ ★ ★ No ratings yet [Bailed Congressman](https://sms4smile.com/quotes/about/bailed-congressman-5383765/) [Caused Financial](https://sms4smile.com/quotes/about/caused-financial-5383764/) [Changed](https://sms4smile.com/quotes/about/changed/) [Collapse](https://sms4smile.com/quotes/about/collapse/) [Congressman](https://sms4smile.com/quotes/about/congressman/) [Congressman Frank](https://sms4smile.com/quotes/about/congressman-frank-5383763/) [Customer](https://sms4smile.com/quotes/about/customer/) [Default](https://sms4smile.com/quotes/about/default/) [Financial](https://sms4smile.com/quotes/about/financial/) [Financial institutions](https://sms4smile.com/quotes/about/financial-institutions/) [Foreclosure](https://sms4smile.com/quotes/about/foreclosure/) [Frank](https://sms4smile.com/quotes/about/frank/) [Frank Changed](https://sms4smile.com/quotes/about/frank-changed-5383762/) [Government](https://sms4smile.com/quotes/about/government/) [Government intervention](https://sms4smile.com/quotes/about/government-intervention/) [Institutions](https://sms4smile.com/quotes/about/institutions/) [Institutions Collapse](https://sms4smile.com/quotes/about/institutions-collapse-5383766/) [Intervention](https://sms4smile.com/quotes/about/intervention/) [Lending](https://sms4smile.com/quotes/about/lending/) [Massive](https://sms4smile.com/quotes/about/massive/) [Mortgage](https://sms4smile.com/quotes/about/mortgage/) [Politics](https://sms4smile.com/quotes/about/politics/) [Practice](https://sms4smile.com/quotes/about/practice/) [Tunes](https://sms4smile.com/quotes/about/tunes/) ## Related quotes > [A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority…](https://sms4smile.com/quotes/alan-greenspan/a-decline-in-the-national-housing-price-level-would-need-to-be/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [We want the accursed foreclosure system wiped out… We will stand by our homes and stay by our firesides by force if necessary, and…](https://sms4smile.com/quotes/mary-elizabeth-lease/we-want-the-accursed-foreclosure-system-wiped-out-we-will-stand-by/) [Mary Elizabeth Lease](https://sms4smile.com/quotes/author/mary-elizabeth-lease/) > [Well, actually, if you can stay in your home that is a better deal for the neighborhood. 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That…](https://sms4smile.com/quotes/jill-stein/african-americans-in-particular-saw-their-cumulative-wealth-crash/) [Jill Stein](https://sms4smile.com/quotes/author/jill-stein/) > [Today's misery is real unemployment, home foreclosures and bankruptcies. This is the Obama Misery Index - and it's at a record high. It's going…](https://sms4smile.com/quotes/mitt-romney/today-s-misery-is-real-unemployment-home-foreclosures-and/) [Mitt Romney](https://sms4smile.com/quotes/author/mitt-romney/) > [Foreclosure is to no one's benefit. I've heard estimates that mortgage investors lose 40 to 50 percent on their investment if it goes into foreclosure.](https://sms4smile.com/quotes/henry-paulson/foreclosure-is-to-no-one-s-benefit-i-ve-heard-estimates-that-mortgage/) [Henry Paulson](https://sms4smile.com/quotes/author/henry-paulson/) > [If home ownership is the American dream, then foreclosure certainly is the American nightmare. It destroys more than credit. It destroys lives. 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