[sirchtruth]

That's way too much information to sift through. The reason I posed the question, is because so many people don't understand what's going on, so I thought if we posted or rather, listed the facts then it would be a little more clear.

I think factually what caused this situation is, Redlining. Banks had to lend to ARM's to high risk, high debt to income clients.

In other words - OVER REGULATION.

[jude24]

I think factually what caused this situation is, Redlining. Banks had to lend to ARM's to high risk, high debt to income clients.

Not really. It has a lot more to do with investment banks taking those high-risk loans, bundling them together, and selling them as though they were low-risk investments. Lots of banks, insurance companies, pension funds, etc. invested in those surprisingly high-risk investments. Now, no one wants to buy these bundled loans.

[jude24]

That's way too much information to sift through.

That's your problem. You're trying to simplify a complex issue - and consequently missing the point.