re: #378 Obdicut

re: #366 Dark_Falcon

Exactly. That was the biggest factor in the housing crisis and it has yet to be really resolved.

Please stop spreading this lie.

re: #377 Obdicut

No, the meltdown was not caused by loaning to the poor and minorities.

God why won’t that stupid fucking tired meme die.

Even though loaning to poor people and minorities did not cause the meldown, the crisis of the subprime mortgage market was an integral part of the credit crisis, was it not? Of course even more fundamental was the fact that everyone involved in the financial schemes was treating obligations as assets… (helped by the fact that some involved parties created schemes for this with completely deceptive and misleading names like “asset-backed security” or “collateralized debt obligations” in order to sell their crap) which really only banks should do and only so in connection with a lot of scrutiny as to the borrower’s collateral and their own securities – but this process missing was one of the major reasons for the subprime lending market to exist in the first place.

Always worth a re-watch (subprime stuff starts getting introduced at about 6:22):

Vimeo

From littlegreenfootballs.com