Quote:
Originally Posted by epitome
It was one of those things where if the banks did things as intended all should have been fine. They got the sweet taste of the insane returns on sub-prime mortgages and exploited them every way they could think of.
Gotta think of the banks like junkies. Give them a little baggie and tell them it has to land all weekend and they will go off the deep end into a deep binge.
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That is actually a spot on analogy of what happened. Banks like Washington Mutual suddenly found themselves able to give out mortgages to anyone who could sign their name then sell them off real fast before they went bad and make some quick money. Pretty soon there doing this as fast as possible not caring what harm may come if and when these mortgages went bad.