| Risk and Reward.
The lenders took the risk to hand out loans to people with questionable means to carry the loan to completion. The reward for years was the lenders making money hand over fist – because the price of housing continued to climb.
The borrowers took the risk to go into loans they did not have the means to carry to completion. The reward for years was borrowers making money hand over fist by flipping or refinancing later – because the price of housing continued to climb.
This was not some ponzi scheme being pulled over the eyes of the lenders or the borrowers. There is a real product and there is a real service. Both parties knew the risks going into the agreement and neither should be protected because they took a risk that did not pan out in their favor - as such they should both suffer the consequences of the market tumble.
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"Religion is an insult to human dignity. With or without it, you'd have good people doing good things and evil people doing evil things. But for good people to do evil things, it takes religion" - Steven Weinberg |