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The appetite for bank bailouts wasn't there in 2008 either, people took issue with how banks paid massive bonuses during that time. Still it happened. We're d

• adrr 7y ago
  Bank bailouts weren’t the problem. Massive amount of fraud the banks allowed was the problem. They allowed people to borrow massive amounts of cash with little to no income. None of the senior execs were prosecuted.
  • toomuchtodo 7y ago
    To be clear, the fraud was banks packaging up subprime loans as prime and then dumping them on the secondary market to unsuspecting investors who thought they were getting quality mortgage bonds (I gloss over the nuance of tranches and CDOs for brevity). This of course hurt homeowners who had loans made that never should’ve been made, but the root cause was investors not getting what they thought they were buying, and the resulting collapse in confidence. Homeowners were collateral damage, and as you mention, prosecutions were underwhelming (only 1 person was prosecuted).
    • Gibbon1 7y ago
      I felt really bad about ordinary people that got clobberd and then just left to fend for themselves. Ordinary people don't buy houses as 'prudent investments'. They do it because that's where they are in life.
  • Ididntdothis 7y ago
    I thought it was the banks building derivatives on top of derivatives on top of derivatives and then paying off the ratings agencies.