Quote:
Originally Posted by onewhippedpuppy
Good point. Pretty much "exhibit A" for why we're all in this mess.
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Yep, we're in this mess because banks were greedy, and incompetent, in getting themselves in secured loans which were obviously going to become unsecured in large part.
The banks have the money, they are the lenders, it is their responsibility to make sure that they obtain sufficient collateral to secure their loans. It is their job to analyze risk, and the value (present and future) of their collateral. They fail when they fail to do that, and instead rely on the "good heart" of secured borrowers.
They failed. Their greed and incompetence has caused this problem.
(It isn't that much different than if the banks just stored their cash out in their parking lots in porta potties, to save on having to construct expensive safes, and installing expensive alarm systems and security guards).