Banks, financial institutions and mortgage lenders have all had to face the music. What is the most basic tenant of lending money? Only lend money to someone that has a high probability of paying that money back. High risk loans (with their massive fees and service charges) were huge cash cows for the last few years spurred on by a government willing to loosen regulations to a point of where our entire financial system is now reeling. Scary to think just how overinflated the market may be by the now collapsing housing boom.
Don't feel sorry for them....they all knew the risks and chose to sink billions of their investors dollars into sub-prime funds. Feel sorry for yourselves because ultimately your tax dollars will be responsible for rebuilding these "industries".
Where's the bottom in this?
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