Quote Originally Posted by gaelic cowboy View Post
No they wouldn't have got denied Frag.

You have to remember back to what was really going on in this case remeber People who are not prime candidates are not always a bad investment.

The banks needed to grow and one area that was badly served was subprime often this includes people the self employed. The bank knew these were risky but then they hit on a new plan we will sell the mortgages on the open market and essentially hive off the risk.

The problem was and is no one really knew what the risk really was and so thereefore they couldnt possibly know a fair price for the contracts.

Governments essentially decided to not regulate these thing in reality because essentially it was felt the market knew best.

In effect they did leave them alone.
Of course they would have denied these loans, why would you put money where there is hardly a chance you will get it back. Banks don't play dice, it is the government that is guilty