Monday, August 20, 2007

Mortgage fiasco worsens: Who's to blame?

We always look for somebody other than ourselves to blame...

How Missed Signs Contributed to a Mortgage Meltdown - New York Times
But the cast of characters who missed signals like the rise of delinquencies and foreclosures is becoming easier to identify. They include investment banks happy to sell risky but lucrative mortgage debt to hedge funds hungry for high interest payments, bond rating agencies willing to hope for the best in the housing market and provide sterling credit appraisals to debt issuers, and subprime mortgage brokers addicted to high sales volumes.