Causes of Crime

[ZeroJunk]

Originally Posted by merrylander

The banks wanted no part of it? You must be joking, for the banks it is a license to print money.

Mortgage broker finds a lender, pockets 1% and disappears

Lender bundles mortgage, pockets 2% sells security bundle and disappears.

Title company sells poor sod $400 worth of title insurance and get 80% as its fee ($320)

The banks wanted no part of holding the debt, loaning out deposits and savings, or making long term loans on short term money.

The government wanted it. So, banks came up with these instruments because of government mandate.

And, sure they made money at it. Until it crashed.

If the government had stayed out of it with their CRA and other ways they were going to "help" and the banks loaned money with the traditional caution there would not have been a bubble.

But, a lot of people who are still in homes they own to this day would not be.