Wayne.B wrote:
On 16 Sep 2008 10:30:05 -0500, Dave wrote:

*Someone* dreamed up this sub-prime crap, and with some forensic
accountancy, they can be found, but it won't be done because it will
tread on too many toes.

Sub-prime was dreamed up because there was only just so much
legitimate mortgage debt to go around. The whole business of
packaging debt and then selling/securitizing it via bonds was highly
profitable while the fun lasted. Even more profitable was borrowing
money at very low interest rates and using the funds to buy high yield
bonds. The profits were limited only by your ability to borrow and
the availability of high yield investments. Sub-prime was invented to
meet that demand. It was clear to me 5 years ago that the bond
holders would eventually be left holding the bag just like the Savings
and Loan industry was caught out back in the 80s. What wasn't clear
to me was that the financial industry had drunk a lot of their own
toxic Kool Aid and would end up being the ultimate bag holders.


For years people have been whining that they couldn't buy houses
because they didn't have good enough jobs, if they had jobs at all. So
credit requirements were loosened and loosened by our illustrious
govmint so ALL could buy houses. So much for socialism.
Gordon