Ravi
Diamond Member
Yep. The were feeding the thirst of the global pool of money that wanted to invest. I'm almost positive most of the high risk loans weren't to poor people, they were to middle class and above...people that qualified for traditional mortgages but were convinced they could have more. It would be nice to see some statistics on this, but I can't find any.75% of the subprime loans issued the past 5 years were done by institutions that were NOT covered by the 1977 CRA....Community reinvestment act....just heard on cnn.... these institutions took these high risks and created these very bad and unsound loans, all on their own....their own poor business decisions.....
But you have to keep in mind, people would rather blame minorities than face facts.