| It left out some of the big causes:
(1) The Acts of Congress that required banks to lend money to the lower end of the specter - meaning subprime people would could afford it.
(2) Banks offering 100% financing, 125% financing, 2 years ARMs with margins set right under the interest rate, subprime loans and my favorite stated loans (so if you can't show enough income to make the well worked out income matrix work, let's just make up what you make; McDonald's working the fryer yep $5K a month after taxes sounds right).
(3) Ameriquest Mortgage and New Century entering the scene making uncanny amounts of money off the subprime market. This enticed the Big Banks aka Wells Fargo, Wachovia, Washington Mutual, Countrywide, Citi, BofA etc. to toss caution (and their risk matrixes) to the wind and invest big time in the failed concept of subprime lending! Hell the Ameriquest Mortgage and New Century Fat Cats (who will one day be in hell) are making this much money why shouldn't we jump into this too risky to be turn concept!
__________________ Avatar: The difference - Hamas/Hezbollah/Islamic Jihad hide behind civilians using them as human shields and Israel stands in front of them protecting them like shields!
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Anti-zionism morphs into anti-semitism 100% of the time!
"When people criticize Zionism, they mean Jews - this is God's own truth." - MLK Jr.
Beer, the problem and the solution to all of life's daily problems. - Homer Simpson |