What the H is Going On?

[sumdumguy]

The banks wrote trillions of dollars of mortgages---packaged them up real pretty and sold them all to investors, mostly foreign institutions. Banks then kept the paper and the houses and gave them air. Now, tell me do, why are the banks in so much trouble over sub-prime mortgages? Seems to me their arses were well covered.
What are we not being told?

[cchurch]

They were giving loans to people who had no way in hell to pay for the houses, with a 'low introductory' interest rate. Then when the low rate was done, the people couldn't pay then they were foreclosed on. This sent a ripple effect through the housing market and dropped the values of houses because of all the houses the banks had to try and sell to regain they investment.

OR something like that. But at least the bank executives got there millions of dollars. SO I guess it is all good.

[cottonpicken]

It was a manufactured bubble,but the size and scope is beyond comprehension.

Our own banks reported profits today,but nobody talks about 125 billion of bad paper that was put on cmhc back(i.e. tax payers back).

The only reason your bank stocks didnt go to 0 Charlie.