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House of Credit Cards
The Hazards of an Economy Built on Bad Loans
Why are banks willing to lend money to people who cannot afford to pay them back? If you're curious as to why the mortgage market seems to have suffered a meltdown of late, and what this says about how banks are manipulating your money, this is the question you have to ask.
For the answer, look at Enron—Ken Lay's house of cards is a scarily apt analogy for the modern mortgage machine. In both cases, borrowers and lenders engaged in the most irresponsible behavior imaginable: the bankers investing vast sums in questionable loans because of their obscene profitability and borrowers suspending their own disbelief because of the bankers' assurances.
For the answer, look at Enron—Ken Lay's house of cards is a scarily apt analogy for the modern mortgage machine. In both cases, borrowers and lenders engaged in the most irresponsible behavior imaginable: the bankers investing vast sums in questionable loans because of their obscene profitability and borrowers suspending their own disbelief because of the bankers' assurances.
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