[misterrob]

But, the ability to repackage and sell the debt as a financial product is what is screwing the system. If it was simply a case of individual banks having bad loans then that would be one thing but it goes far beyond that. The debt was supposedly good but in fact it wasn’t.

[July4]

Debt sold as a financial product is a legitimate investment, but that investment absolutely depends on full and honest disclosure in the prospectus. Home loan applicants got loans they couldn't or wouldn't repay, and, like a line of dominos standing on end, the system fell — and still is falling—one piece at a time.