Euro Area

[gaelic cowboy]

I am sure the sales-guys had a good laugh, but these mortages would have been denied otherwise. To blame the market to be causing this is kinda off, it were the politicians who set it in motion

If there is no consequence there can be no free market, hands off and we will be fine

Leave us alone

No they wouldn't have got denied Frag.

You have to remember back to what was really going on here plus 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 in subprime which often this includes the self employed. The bank knew these were risky-ish but then figured we will sell the mortgages on the open market and essentially hive off the risk.

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

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

In effect they did leave them alone.