personaly, I just dont see how a bank could think that a loan in which the amount of extra money they would get back on interest, when one takes into account the likelyhood of the person being able to pay the whole loan back leaves you with less money when you started with, how they could say that it was a worthwhile risk.
I mean, there are probably casino games that have better overall chances of ending up with more money than you started with. An individual should be free to make whatever stupid risks they want to with their own money, but a bank should realy not do stupid things like give loans to people who most likely wont pay them back.
Heck, I bet even loansharks wouldnt touch most of those people as they wouldnt have enough to steal to make back the money they would have gotten if payed back with interest.
In other words, sub-prime loans go against even the idiotic policies of economic rationalism (an oxymoron, as economics is by definition irrational) would say to at least make sub-prime loans a small enough part that the money you make back on other loans would be enough to cover losses from unfulfillable sub-prime loans.
Snail racing: (500 posts per line)------@%