Honestly, How are you not tired of blaming the bankers on this one. They did their job. The US Govt set up sub-prime mortgages and then it became a game of "offer sub prime loans or go out of business". So they offered less then logical mortgages to people who could never afford them. How does the bank make money off this? They essentially sell it, the insurance on it, and everything to do with it. So i guess the banks should have just went out of business because of Govt intervention? Stomached the bad loans? Or just hold onto them and do the same exact thing that happened but on a per bank basis. It was a bubble and it was going to burst with or without the trades involved.
The rates fell through the floor because of the massive increase in mortgages. I assume a good amount of you locked in at a lower rate, you have only those Evil Bankers who were doing their job to thank.
It is a little disheartening that the Govt caused this and then only bailed out the Corporations who made tons of money off it. Is it Clintons fault for creating sub prime mortgages? Maybe. Was it George W for extending them through out his term? Probably just as much as Clinton is to blame.