/biz/ - Business & Finance

>>13073541
>Finance is where the smart self interested people go, you think the're going to let themselves get fucked by a real estate crash if it was real?
So are you saying they actually did? Oh wait... it was almost like there was a government mandate to make every american a home owner regardless of income or credit and government favors were only granted to those banks who followed the mandate of giving NINJA (no income, no job) loans and that all the programs through which these loans were provided were backed in theory by various government mortgage organization.

They knew they would get bailed out even if there was a crash. They were shocked that Lehman was allowed to fail (but that's bc Lehman brazenly doubled down on mortgages while anticipating bailout if it went south). And lets remember that before that point mortgages were basically guaranteed money due to the creditor being able to seize the house in default, and home prices were either stable or rising since forever.

From banks perspective, this is called "Heads I win, tails you lose" in economics though we call it moral hazard.