Confused?

[dwenius]

These two gentlemen will set you straight on just what, exactly, this whole sub-prime lending thing is all about.

Wait through the 20 or so seconds of setup.

Comments

[glaucon.livejournal.com]

they left out the bit about the managers at the lending banks getting a big commission on every loan they issued, even bad ones, but no reward for denying bad loans. and no punishment of any kind for anything at all.

and most of the management being drawn from the sales side rather than from underwriting or risk management.