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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (421082)	10/2/2008 5:28:10 PM
From: TimF	Read Replies (3) \| Respond to of 1571935

The root cause is indeed bad mortgages. Without the mortgages going bad the securities wouldn't have gone bad. The securities added to the bad mortgage problem, causing their to be more money for such mortgages that could go bad, but at the root its too much money being lent at too generous of terms, to people who had too little equity in the collateral for the loans, combined with a bubble, and then a pop in the bubble, in housing, partially because of all the questionable (now bad) loans, and partially because of preferential treatment given to investing in real estate by the government (and partially all the normal reasons involved in any bubble, the belief that what your investing in will just go up and up...)