[quote=briansd1]
If not for the housing collapse, there wouldnt’ve been a financial crash. There wouldn’t be all the foreclosures because homeowners would be able to sell their houses for profit, even if they couldn’t service their mortgages.
I guess Wall Street could claim that their financial crash was caused by homeowners who didn’t pay their bills. If only homeowners continued to service their mortgages, we’d all be sitting pretty.[/quote]
You can’t separate the housing collapse from the financial crash. The housing boom was lead and fed by the financial sector (not by greedy buyers who bought houses they couldn’t afford), and the insatiable appetite of the financial sector for CDO product. The crash of the market, which was first and foremost a credit crisis, was the result of CDS’s written on mortgage backed securities filled with…guess what? Collaterlized debt! The two ARE the same thing.
