re: #307 Vicious Babushka

What caused the housing collapse was not that loans were given to borrowers with poor credit, but the banks then repackaged these bad loans as “securities” and sold them to pension funds, etc.

And it wan’t even good or bad credit that was the issue; mostly it was banks fudging the income requirements for the loans. A lot of people with perfectly good credit had it ruined in the meltdown because they’d been persuaded to take out big loans and then lost their jobs.