Originally Posted By: Wildcard

Sinij: you twist your counter-argument into stating that the housing crisis was not the sole reason for the collapse


This is not what I said.

What I said is that bad loans that were repackaged and sold as a safe investment securities and ultimately resulted in a financial collapse and recession were mostly made because there was a demand for them. Sure, a small portion of them were due to bad "mandatory" regulation aimed at expanding home ownership. Most of them, and the worst excesses of that system, were caused by DEMAND FOR REPACKAGED SECURITIES. Nobody understood what these securities were and regulators did not step in and said, "wait a second, these are not AAA assets!". So a whole bunch of bankers made BILLIONS selling risky junk bonds as a ultra-secure assets.

That is the root cause of recession.

Worst thing, since it wasn't illegal (no regulation!) nobody even went to jail over it.

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