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Old 09-17-2012, 06:45 PM  
DTK
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Quote:
Originally Posted by Rochard View Post
I still believe the American public is largely responsable.
Disagree strongly on this point. It's true there were people who went into these loans with no intention of paying them.

However,
  • It's the banks who created the game.
  • It's the banks who were paying 3x the commission on BS loans than they were paying on normal loans, which fueled TONS of predatory lending.
  • It's the banks who were selling these crap mortgages to counterparties while at the same time placing huge bets against these loans, and not disclosing their adverse position (which is illegal).
  • It's the banks who were telling their customers (other large banks, pension funds etc) that these were rock solid investments while calling them "pieces of crap" in their internal emails.

They knew they were committing massive fraud.
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