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The Race to the Bottom
- Cheap money, driven by excessive investor capital and eagerness, leads to a race to the bottom.
- This results in lower returns and weaker investment standards as lenders compete.
Aggressive Lending Practices
- Bob O'Leary recounts banks' aggressive lending practices, particularly to private equity firms, often disregarding previous norms.
- The focus was on speed and low standards, foreshadowing future problems.
Early Warning Signs
- Bob O'Leary saw signs of the market turning, like uncompleted houses and banks trying to offload debt.
- These were early indicators of the seizing financial system.