1. lend money to people with no job or proven income.
2. sell the mortgage to insurance companies and other countries as mortgage backed security.
3. ???
4. Profit!
I never understood how can the American people still think they need to “bail out” the banks when it is the banks that is robbing them of everything. I would like to ask this question, who got the money?
It is not the borrowers that are defaulting, because they borrowed the money to buy houses, now the houses are gone, in the hand of the banks.
It is not the insurance companies or the countries who bought these “mortgage backed securities”, they were the ones that was hit the most, we know iceland just went bankrupt.
It is the BANKS! They are now owning millions of house and getting trillions of dollars from the Feds, and we all know who owns the Federal Reserve, yes the BANKS. Feds says they gave the banks money so they can lend, but we all know they are NOT lending right now, what are they waiting for? They are using the money to crash the stock market even more, so they could buy good companies for pennies and own even more assets that used to belong to the American people. Once again, the American people has been held hostage by the banks and lost their houses and investments.
