They didn't know how bad the mortgages really were, and the failure of one mortgage is not independent from the failure of the next. We're seeing this now in n

They didn't know how bad the mortgages really were, and the failure of one mortgage is not independent from the failure of the next. We're seeing this now in neighborhoods were foreclosures are driving housing prices down and making people want to walk away from underwater mortgages. This is starting to happen in California.