Quote:
Originally Posted by DaddyHalbucks
Just like the government rolled the dice with the subprime market?
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That is only part of the story. Sure subprimes were bad but where they went really ugly is when banks like Washington Mutual saw that they could make millions giving the loans to anyone then reselling them. So they busted their asses to give as many subprimes as they could. Those that bought the loans then broke them up, resold them and over-leveraged those assets. I read that for every dollar in subprime mortgages there were 35 dollars in loans created. That has nothing to do with the government and everything to do with these companies coming up with bizarre and creative ways to make money out of thin air and eventually the house of cards crumbled.