Posted by fayeroe on December 12, 2008, at 16:32:09
In reply to Economics 101, posted by Sigismund on December 11, 2008, at 23:11:43
$$$$$$$$$$The banks had made too many bad loans. There were big holes in their balance sheets. No one knew what was truth and what was fiction.$$$$$$$$$
I have said this from the beginning of the foreclosure issues........banks knew from looking at someone's financial statement whether or not they could afford the loan they asked for...I say that the banks and the home owners both made huge mistakes. But, ultimately the bank screwed it.
poster:fayeroe
thread:868220
URL: http://www.dr-bob.org/babble/poli/20081212/msgs/868331.html