The auto industry and other sectors of the economy are suffering because of the lack of credit. And credit is scarce because too many loans were given out in recent years to people who had no hope of paying them back. So what are the key policies that triggered this mess? Why did banks have an incentive to hand out high-risk loans? And what are the lessons to learn so this doesn’t happen again? We ask Howard Husock, vice president for policy research at the Manhattan Institute.
