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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (21602)	8/25/2007 1:54:12 PM
From: Ilaine	Read Replies (2) \| Respond to of 217868

Subprime crisis actually might be limited to a certain sector of the population, namely, not very rational people, undereducated, maybe not native English speakers, people who engage in magical thinking, delusional thinking, or like to gamble. In the highly regulated US, it's hard to fathom why mortgage brokers are completely unregulated. Thus, they are free to engage in fraud with no oversight. Note that it's both borrowers and lenders who were defrauded, as the mortgage brokers are middlemen working for themselves, and there's little or no recourse against them, they don't have very deep pockets. Lenders didn't look very hard at the borrowers because they weren't going to keep the mortgages, they packaged them and sold them --- maybe to the Chinese? ;^)