sci.energy.hydrogen

Dan Bloomquist wrote:
> Terryc wrote:
>
>> knews4u2chew@ wrote:
>>
>>>> Even
>>>> suppossedly smart, train and experienced people. Go figure.
>>>>
>>>
>>> Individuals did not buy sub prime mortgages banks did.
>>
>>
>> Banks were that dumb?
>
>
> Banking created the instruments. Then they were bundled and sold to the
> less aware.

Okay, my understanding was that is was other agents who "made " the
sub-prime loans and bundled them up to other investors.

AFAIK, in Australia, sub-prime lending isn't possible. The bank/agent
has to make sure that the person taking out the loan has a reasonable
chance of paying back the loan. they can not just sign anyone up,or they
can loose their dough.

However, every time money becomes freely available and dubious/high risk
loans start being made, we see this bubble burst in some form time and
time again. I'm seeing it about every decade to greater or lesser extent.