You're overlooking the possibility that a great deal of these risky mortgages were taken out by people so they could get a bigger and more expensive house than they should have bought. That is what I am talking about.
Sure there are some instances where unscrupulous and down-right crooked loan brokers lied people into bad loans, but I truly believe those are the exception rather than the rule.
With interest rates as low as they have been the last few years for 30 and 15 year fixed loans no one, who was buying the right amount of house for their budget, should have needed a risky, variable loan. Sorry, I've been involved in the real estate business for 25 years in all capacities (even started a mortgage company once) and this problem is mainly a result of people getting too greedy over how much house they wanted and now they want us to bail them out.
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