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 Originally Posted by zook
Originally Posted by Trashcona
Maybe this is the wrong thread, but can I ask who's dumbass idea it was to lend 100's of thousands of dollars to people who only earned minimum wage? Why are people(the banks) so stupid? It's almost as if these lending agencies put all of there eggs in one basket and in one big swoop, things turn to shit.
Mortgage brokers made these loans because they could immediately sell them to bigger companies who could then package them together and sell them to someone else as a high-yielding security without disclosing the level of risk. To me this is a perfect example of a need for gov't regulation, but I may be missing something.
this sounds absurd, and wholly likely.
i read something about 'ninja loans' (lolwtf?) where banks (or someone) loaned money to people with no assets, income even addresses) and is it this that has been passed on in these?
then i guess that because people cant pay these debts eventually after the economic downturn its just money written off as bad debt?
Or od i need to rewatch the vids 
Also, while ive little knowledge, and was abroad, it seemed clear to me that once rumours of AIG having problems became sort of public, Lehman were never going to get bailed out as they were a zillion times less important than AIG is. Correct assumption?
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