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In response to
"Go! -- nm"
by
Dr.Vermin
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1) People wanted to buy bigger homes than they could afford, so they did
Posted by
Roger More (aka RogerMore)
Feb 10 '12, 10:28
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2) Banks accepted loans from people with no jobs and no assets.
3) Banks were able to repackage their loans, with help of ratings agencies, and then sell them on to other investors who didn't know what they were buying.
4) Lenders like the big banks and Freddie Mac and Fannie felt they had a government guarantee that they would be bailed out if things really went wrong, so in the meantime they could do whatever they felt like
5) Regulators and legislators were lax in getting involved in all this, because no one wanted to break up the party
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