And yes, the government probably made a mistake in encouraging low-income households to take out mortgages on the assumption that there would not be a significant financial crisis in the future.
But it was the bubble that ensued when investors saw the subprime mortgages as an opportunity rather than a cautious investment that made thing sget hairy
That’s not true. If they believed it wasn’t safe, they could have gotten out of it under the provision of the law that said banks couldn’t be forced to make mortgages that were unreasonably risky or a liability to their business.
