You mean forcing banks to lend to people who could not pay it back was a bad idea? Who knew!? It was obviously Wall Streets fault!
...and then the banks bundled them up into securitized assets and sold them all over the world, with the help of S&P’s and Moody’s who gave them a AAA rating. It was a great con.
Well, since the banks got the government to subsidize their losses while retaining the notes it was a great deal for the banks.
The government is subsidizing private mortgage debt with public money. It’s a win-win for the banks and a lose-lose for the American people. The effect of their policy is to keep housing prices high, extending maximum indebtedness to Americans with losses covered by taxpayers.
It’s crony-federalism. Wakeup.
colluding with the banks to have them lend to high risk neighborhoods and then as a matter of policy looking the other way when the promissory notes were sold in bundles BECAUSE the banks were giving campaign contributions. (or then the bankers and insiders)