"You are 100% correct- but it was Cuomo who sued them and won the biggest settlement ever for $2.1 bilion (a lot of money at the time) and sent the signal to the rest of them...This, while at the same time FANNIE and FREDDIE moved to guarantee them against loss -- you had a double whammy.
Banks knew they were bad loans but they were forced to do it under threat of lawsuit. And they were guaranteed not to lose money, so.. whammo. Housing price rose and rose while they loaned and loaned, and everyone pocketed money all around -- especially the thieves Harold Raimes and AIG and Goldman Sachs."
Good post, bro.
thanks- I was called an idiot for trying to explain this before