The thought process was this: If I can get this loan made and repackage it out before he defaults, then I have made my money. That is the greed part.
If I can get this loan made and repackage it out before he defaults, then I have made my money. That is the greed part.
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That is understanable but without the ability to sell the loan to someone else without recourse greed would not motivate a person to make a bad loan. Greed also does not make a third party buy into a bad loan, something else had to be involved and that was government interference in the process. Free financial markets are fairly self correcting, we could never have had anything like the mess we have now simply because of greed.
I am sure that you yourself understand what is going on here but I run into some people who rant about greed as if the mere fact that someone is greedy allows them to make huge sums of money, even though in reality a lot of people who are quite selfish and greedy end up with very little. Of course greed is a vague term anyway, just how much can someone have without being greedy? It depends on who you ask.
My own idea of real greed tends to run toward the kind of person who would rather not make money than have to share it with someone else. A good example would be a local man who had a business selling plants, especially daylillies. When he decided to retire from it the sensible thing to do would have been to have a half price sale and sell as much as possible and then wholesale the rest and be done. Instead he just quit maintaining his gardens and sold only what he could sell at full retail. I stopped once and inquired if he would wholesale and he flat refused, he let most of his stock wither and die rather than take a penny less than his retail prices for anything. I believe Aesop’s story of the dog in the manger was written to illustrate the attitude this man had.