Schumer sides with his tribe over his country.

[The Grand Nudger]

Their inability to pay was caused by the rapid decrease in the value of the homes they purchased on credit, which the banks would not have extended, if the percieved value of the home (and buyer) did not exceed the value of the loan.  The rapid decrease in that value was due to a collapse in exotic instruments.  They milked the cow one too many times, suddenly a  million dollar home was worth -not a million dollars- and those loans were defaulted.  It would have made very little fiscal sense for the individual homeowners -not- to take out those loans and build that equity.  They were essentially buying money.  Or so they were led to believe...and so the banks accepted, because without the real asset of the home there was nothing to base the instruments upon (mortgage derivatives), but the banks didn't want to assume the liability of the real asset, and so shifted that onto the home buyer..........as the engine of their own little sideshow. They ignored what warnings they had- because it was profitable to do so, and so like that home buyer...it would have made little fiscal sense to be responsible with their credit -. It was a win win for the instruments, regardless of whether or not the homebuyer defaulted, as some of those instruments actually -depended- upon default.

We got scammed......plain and simple. It;s not the fault of the people who trusted the banks and their pocket appraisers. Personally, I made off like a bandit due to the collapse, but I can't, in good conscience, actually pin the collapse on those who were scammed. Course, this is the very last thing you'll hear from a bought government, a bought investigation, a bought bank, a bought bailout.......it's all the degenerate debtors fault......lets start the blame game at the point of foreclosure and not mention why those foreclosures occurred, or even that banks encouraged default in order to milk -yet more money- out of the would-be homeowner....and you, John Q. Taxpayer.

Hey, hey! Look over here!
(picks your pocket over there)

We -gave- them that reserve after the collapse, so it's not exactly a hardship to have to set aside someone else's money, after bilking some other party, in order to go back to the same old scam.......which is exactly what they've done, btw.

( I dont know why, but I felt like a dirtbag after the collapse for not understanding it, so I took the plunge and looked into exotic instruments...surprised the shit out of me, it's riveting.,..I expected it boring, but I devoured everything I found. The guys who ran this shit could have run a clinic on the more famous mobsters and scammers we're all familiar with, but the whole thing was absolutely within the letter of the law..law enforcement didn't even understand these derivatives and so there wasn't much they could have done if some -did- cross the line. Really came out of left field for me. I don't know, you might find it interesting as well.)