The chinese Canadian developed a formula for measuring relative mortgage risk that spit out an easy to understand number. He told people the limits of the equation and that you can't just use it blindly.
Bank managers choose to ignore him and used it blindly.
Because it is relative, it only ranks your risk compared to others in the group, so if everyone in the group is at a high risk, you still got a good score even if you are high risk.
The idiot mortgage managers did their jobs poorly.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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