Well if you ask me it's the Realtors. Who got these poor folks into houses either they couldn't afford. Realtors who only saw $$$ for the past two years partnered up with questionable lenders who would give anyone a loan. Granted they pay 20% interest and put in some cases 30 to 40% down. Then start foreclusre precedures with the first missed payments. This is an outrage that subprime lenders gave money to those who they knew would default. It should be criminal.
The other side of Subprime lending is it helped a lot of people who normally wouldn't of gotten a loan for a home get one. These folks for most part have been paying their bills on time and many converted to a normal loan now.
I don't think the government should bail out the lending industry. We have seen this movie before it's called the S&L crises.
Sub prime lending...