On 21 September 2010 11:52, steve harley <p...@paper-ape.com> wrote:
> it is the bankers -- the
> professionals at risk management -- who didn't evaluate the risk properly
> ... they sold riskier and riskier loans as they invented cleverer ways to
> ignore the risk;
>
Oh, but that was the whole appeal of the sub-prime mortgages from the
banks point of view. The mortgages were so risky that a great many of
them were bound to fail, and the banks would profit handsomely from
the foreclosures. What they failed to recognise was that they'd
created a pyramid scheme which would return less and less as it grew,
as all pyramid schemes are bound to do. The collapse of the sub-prime
mortgage/profit from foreclosure scheme was inevitable, and the
failure of the U.S. Government was in permitting it to run to its
conclusion. They should have grown some balls, stood on the banks'
throats and stopped the lunatic greed in its tracks.
regards, Anthony
"Of what use is lens and light
to those who lack in mind and sight"
(Anon)
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