Originally Posted by BlackCrayon

the big banks knew exactly what was going on and knew it was very risky but like all investors, when you make a bad investment, you take a loss, well not when you get government to bail you out. basically they have a golden ticket to invest as recklessly as they please because they won't be allowed to fail.

people are stupid! individual morons being allowed to determine if they can afford a mortgage or not is crazy! banks should be protecting their assets. not giving them out like candy "assuming" the buyer is responsible and knows what he's doing. the whole housing crisis was like a huge pump and dump stock scam, at least to my simple mind. of course people are going to lose their homes when their payments double due to the whole subprime scam which should of never been legal in the first place, a lot of people didn't even understand the concept.