[eyeamok]

I don’t see it as “predatory Mortgages” being the problem, Massive FRAUD and Stupidity on the borrowers part was the problem, thousands of Bankers should have been thrown in PRISON for the fraud they committed

[fhayek]

Well, not to defend the lenders too much, but it was the government who instigated the mortgage meltdown. The government required that banks loan to minorities and other disadvantaged groups. If they didn't they were subjected to severe penalties. Once the banks had made these risky loans, they discovered that they could make lemonade out of lemons by bundling them up in mortgage based securities and unloading them on the secondary market. Win-win. All they had to do was grease the palms of willing rating agencies. Banks were greedy, no doubt. But the government, using things like the Community Reinvestment Act was the the origin of the crisis.