The 2009 crisis was partly a result of a lot of people fucking each other over through loopholes this way Like, those mortgages were supposed to be a stable investment because they were meant to go to homeowners, who are way more likely to stick it out long-term than investors
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But a lot of investors wanting to take advantage of the mortgage boom and the easy credit just blatantly lied -- either via a simple loophole (live in the house a year as the mortgage originator to fulfill your contract terms, then flip it or rent it out) or just outright fraud
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And the people they were theoretically defrauding (the banks and their underwriters) didn't give a shit and didn't bother to check because the whole system had become just creating new mortgage debt and then immediately passing the hot potato onto the open financial markets
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...is there like a drug people on Wallstreet have to take that prevents them from learning from history because I remember 2008ish showing us why that is a CATASTROPICALLY BAD IDEA.
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It taught them that mortgages are bad so they had to move on to something more solid than mortgages, which I guess is rent
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