Ravi
Diamond Member
because the only measure that we have of future performance IS past performance
Did you know that part of the reason we got into the subprime mess is because they did exactly that? Lenders based the future mortgage default rate on the past default rate but forgot to take into account the past default rate was from borrowers that made down payments and had assets. Not from people borrowing money with no income and no assets. When the average default rate rose from 2% to 15% and higher the entire thing fell apart and the mistake was realized.
And Wall Street kept pushing these loans. This is who you want to manage the future of millions of Americans. I'd rather stick with things as they are now.