4 ms·
Huh? Sub-prime no-doc, interest only loans were handed out like Costco samples, repacked as mortgage backed securities and dumped on the market .
by nickphx 3y ago
Huh? Sub-prime no-doc, interest only loans were handed out like Costco samples, repacked as mortgage backed securities and dumped on the market .
- bsder 3y agoMostly to minority housebuyers who had very few other choices as, in reality, they didn't qualify for a loan. You had a large number of predatory banks with a big helping of fraud filling out bogus paperwork and shoving junk loans into the system. The homebuyers lost their money, their house, and their credit. The economy almost collapsed. A tiny number of bank loan officers at the bottom got convicted as scapegoats. And all the bank fat cats got bailed out. The fact that Obama didn't simply nationalize every single failing megabank was possibly his biggest failure as President.