Banks were under no gov't decree to give out no income/no docs loans to people with bad credit. A good friend is on the board of a local bank and they never gave out those type of loans and they are doing great. They required at least 10% down and did not offer any interest only loans etc.
The problem was banks lowered their lending standards and gave loans to people that did not deserve them. The idiot people who took out these subprime loans have as much fault if not more.
again it was greed that caused this mess. The faultI have with the gov't is they should have stepped up and stopped these stupid loans back in 2003-2006 when there were many anylyst saying there was going to be a huge problem with them in a few years.
Rush is right on this...McCain needs to quit blaming Wall St. greed and Bush for the financial mess. He needs to put the blame on the liberal loan policies pushed by Democrats.
Anyone who thinks Democrats are ever good for the economy obviously needs some education.
Actually you have to go one level up the tree. The reason these loans were around at all was the very loose money policy of Greenspan. You have loose money and no personal responsibility from the borrowers and you get this mess (i.e. public institution trying to maximize shareholder value while trying to layoff the risk) it ends up in very creative SIVs and backed by CDS to service demand.