Greed and irresponsible lending from "summary" of Too Big to Fail by Andrew Ross Sorkin
The financial crisis of 2008 was fueled by a toxic combination of greed and irresponsible lending. Banks and financial institutions were driven by the insatiable desire for profits, leading them to engage in risky lending practices that ultimately backfired. Lenders threw caution to the wind, approving mortgages for borrowers who clearly could not afford them. Subprime mortgages became all the rage, with banks eager to cash in on the housing boom. These loans were often given to individuals with poor credit histories or unstable financial situations, making them highly risky. But the lure of quick money was too strong to resist. Banks packaged these risky mortgages into complex financial products known as mortgage-backed securities, selling them off to investors around the world. They failed to properly assess the risks involved, assuming that housing prices would continue to rise indefinitely. As the housing market began to collapse, the flaws in this system became painfully apparent. ...
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