Quote:
Originally Posted by Captain Morgan
.....I'm not arguing in any way, shape or form that banks weren't partially responsible for this mess. However, the main culprit here was greed, pure and simple. Greed by the banks, greed by the loan officers that were paid on commission, and greed by the people who just HAD to have that bigger house with all the fancy crap inside. People want more and more and more, so the banks found a way to sell it to the people and the people ate it up. People kept buying more crap on credit, then when the payments got too high, they borrowed against their houses to pay off their credit cards, then did it all over again. If anyone thinks this was solely set up by the banks, just so the banks could foreclose on houses, then they really need to take a look at the big picture. And the title of that picture is "Greed."
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The deregulation started way back in the Carter years, but progressed significantly under Clinton and continued under Bush. The whole point was to keep from regulating derivative loans so banks could create this "subprime" loan in order to sell it off for a profit. Keep the less risky loans and sell off the risky ones. Therefore, write as many subprime loans as possible without regard to delinquency.
This was thought out way before the housing bubble. The greediest usually reside at the top.