Comment by face_mcgace

On a basic level, yes, banks need to lend money. But saying more defaults came in than were expected is a vast understatement. Banks lent so much money, and were so exposed to risk, that any market correction could have, and did, destroy well established financial institutions. I mean, we're talking razor thin protections from financial ruin basically predicated on the need that housing must always go up. It is literally insane levels of over exposure - not just small leverage to help build a small housing community.

How can you expect people to not default in a system endemic with corruption and rife with irresponsibility?