“And the folks that securitized this crap just collected their fees and sold them off to “investors.” So the question is: Why did the investors want this paper? Because they were starved for yield, used extremely bad judgement when analyzing how the loans “should” perform (they also dramatically underestimated the probability of widespread fraud), and thought that if they were wrong they could just sell it off. The problem with the last issue is that everyone tends to get that idea about the same time.”
Let’s not forget that the ratings agencies had a nice little hand in this giving these investments ratings that absolutely made no sense.
