It’s cyclical as underdose suggested. Joe Sixpack may not want to admit he’s the real culprit, but if the banks were careful in who they loaned the money to, i.e., making sure Joe Sixpack could pay it back, then we wouldn’t be in this mess.
Regardless of how Joe Sixpack squandered his winnings, recklessly pumping money into the economy, he wouldn’t have the money in the first place if the banks checked into the capability and risk-factor of Joe Sixpack.
It ultimately does rest w/the bank. Joe Sixpack wasn’t going to turn down free money if some stupid bank was going to give it to him. Joe Sixpack isn’t the sharpest tool in the shed – or maybe he is.
