Here is a new "take" on the 2009 crash in the housing market.
A friend of mine who had worked in a bank working with closing home said to me: "how can some of these people pay for their house loan--it won't happen".
Well, the US was stuck with all of those bad loans--or they sold them off again and again--until the market crashed.
What part of stupid is this anyway?
Wife ran mortgage dept for local bank and would deny mortgage loans. They would go down the road to the national bank and would get a loan. She knew this thing was going to blow as did everyone else in the bidness. Local bank wasn't reselling to Freddie and Fannie so they had to make loans that met standard repayment guidelines. And also had to be aware of "red lining".