I agree with that. The problem wasn't the mortgages. The problem was the economy that tanked. Mortgages always take it on the chin in an economic downturn, every time. And banks take it on the chin from mortgages and commercial loans.
The oil price shock which this nation has done little or nothing to prepare for since the first one in the 1970's, had more to do with the crisis than mortgages.
Credit card rate shock was probably next. Banks got greedy and drove their customers into bankruptcy. Both fuel prices and credit card rate increases brought consumer spending to an abrupt halt.;
And the final nail in the coffin of consumer psychology is the way Bush shocked the nation with the demand for TARP. That had the double whammy of directly assaulting consumer psychology and handing the pending election to the rat's, a double blow.
If the economy had been stable, the mortgages would still be being paid.
I think they are leaving out what the IMF did in changing accounting procedures in 2007 by moving from “hold to deliver as the value of a thing increased” to “mark to market” where the value is immediate. They demanded the USA change. It ruined the markets and nearly caused a world financial collapse. Soros was chair of the IMF at one time. Did he have a hand in it?
At the secret, closed session of Congress on Mar. 12, 2008, Steny Hoyer predicted the collapse of housing and currency, among many other catastrophies. Who told him? Soros? At that time Bush instructed Paulson to prepare a plan (TARP).
When the $500 billion run came in October of 2008, the money was there so banks would not fail just before elections. We are pawns.
ROFLOL