> Sam wrote:
> The crisis was caused by forcing lenders to provide sub-prime
> mortgages to people that couldn't pay them back.

That's just plain false.  Here's how you know:

The government could easily just offer to buy up every sub-prime AND
near-prime whether it was in default or not.  That would cost $1T.

If your assertion is correct, why not just do that and be done with it?

And since $700B is 70% of that entire market why wouldn't banks be
happy lending knowing that 70% of the problem has already been solved?

Please explain.

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