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The rise of subprime mortgage lending from "summary" of The Big Short: Inside the Doomsday Machine (movie tie-in) by Michael Lewis
The financial world had found a new toy to play with: subprime mortgage lending. It was an idea that seemed to make sense at the time - give loans to people who wouldn't traditionally qualify for them, and watch as the profits rolled in. But as with many things in finance, the reality was far more complex than it seemed. Subprime mortgage lending was built on a shaky foundation, with borrowers who had little to no chance of paying back their loans. But the banks didn't seem to care - they were making money hand over fist, and that was all that mattered. They bundled these risky loans together and sold them off to investors, who were eager to get in on the action. As the subprime mortgage market grew, so did the greed of those involved. Lenders were pushing loans onto p...
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