2012-09-11 — bloomberg.com
``Securitization discourages lending that can't be easily mechanized: Banks lose interest in making loans to small businesses. Troubled loans end up in needlessly destructive foreclosures or lawsuits because a one-on-one negotiation between a lender and a borrower is impossible.
It's one thing to securitize credit that can't be extended by a bank. Without railroad bonds there would have been no railroads. But the issuance of railroad bonds wasn't mechanistic: Investors expected underwriters to perform due diligence on each borrower. ''
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