Kurt Ullman wrote:
... just like everybody was happy with the subprime market except "a
few rabid loons."

At the time. Yeah. Congress and the White House and the Fed were all
touting subprime as a way to get more people into houses and help
people who might not otherwise acheive the American Dream. Of course
the rabid loons were eventually proved right (just like the naysayers
of the Tech Bubble, the GoGo 60s, and probably the Tulip Bubble in
1593. I knew we were going to have trouble when the Rocket Scientists
started telling us that The Subprime Was Different from all the other
bubbles. Generally that is when you start heading for the doors (g).

Worse. Federal morgatage and banking regulations actually REQUIRED lenders
to provide a certain percentage of loans to minority, ethnic, disadvantaged,
etc. groups. Members of these groups could not possibly afford current
rates, even if risk factors were ignored.

Banks are even required to have branch offices in neighborhoods where the
only foot traffic consists of hookers and bank robbers.