Reading HN version of the events is live stepping into alternative reality. Just for the fun of it I did Ctrl-F for a word "conforming" and it was nowhere to be

Reading HN version of the events is live stepping into alternative reality. Just for the fun of it I did Ctrl-F for a word "conforming" and it was nowhere to be found in the comments. Subprime is irrelevant. Prime is irrelevant. The only thing that was relevant was conforming vs. non-conforming loans. Non-conforming loans started the fall ( oh, and nearly all subprime loans were non-conforming but that's not that relevant as the total amount of money in subprime non-conforming was just not that high compared to the amount of money in prime non-conforming ) because conforming loans were sold to F&F and removed from the books. Originating conforming just did not may that much which is why it was difficult to get them while a barely walking corpse could get NINJA 3/1 loan with a payment lower than the APR and a balloon at 5 years. And it was not the CDOs that mattered. It was CDS that did not trigger when the underlying collapsed. That was fraud. Fraud that the treasury secretary at the time oversaw. It was fraud that Goldman became a bank to get the protection of US Government and was allowed not to behave like a bank, etc, etc, etc.