Who, dear sir, is "they" and "these bastards"? We have to be careful here, and looking to blame "everyone" isn't terribly productive. More important, now that we're in this mess, what steps can and should be taken to control the damage and prevent a complete meltdown?
I don’t blame blindly, I blame the Executives and traders and decision makers who decided that loaning money has zero risk, and that they hold no responsibility morally or legally for making sure they lend appropriately.
If you loan someone money you know they have no chance of paying back, you are a snake and a bastard, and are even less moral than the borrower who eventually will not be able to pay.
Lending and borrowing is a two way street... you can’t “mathematically take risk out of lending” These CDO’s and crap were a scam. You can’t “AUTOMATE” lending... FICO scores have nothing to do with lending or repayment... They are just algorithms that frankly are crap. Yet the entire industry decided hey as long as the computer spits out what I want to see, who cares what the underlying inputs are.
The Federal Reserve Banks and the large national Banks are nothing but snakes, the lot of them. They have completely failed in any measurable way of engaging in fiscal responsibility. They sold out this nation on every level to pad their own pockets, and have left a mess the rest of us will have to clean up. And not 1% if that will ever pay the price for their malfeasance.