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HeyBub[_3_] HeyBub[_3_] is offline
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Default Bailout (politics)


If everyone at these institutions knew so much, why did they get stuck
holding the sub-prime loans. For example, if they knew the loans
were going to go into default, Lehman Bros and Bear Stearns could have
sold them all off to less sophisticated buyers.

They relied on hope. While any sane person knows that "hope" is not a
strategy, sometimes it's all that's available.

Actually, they had no choice: either make the sub-prime, no money down,
don't look at income, employment history, or credit rating or be sanctioned
or closed by federal regulators.