It was partly that. It was also the government pressuring the banks to lend to people who had little chance of paying the bill. And it was people who took out mortgages at low rates that were variable rates, sure to go up, or with eventual balloon payments. It was also people borrowing more money than the house was worth and spending it on home improvements they couldn’t afford – or on boats, etc.
It was partly that. It was also the government pressuring the banks to lend to people who had little chance of paying the bill. And it was people who took out mortgages at low rates that were variable rates, sure to go up, or with eventual balloon payments. It was also people borrowing more money than the house was worth and spending it on home improvements they couldn’t afford – or on boats, etc.
It was a whole lot of stupidity in many places.