I agree in a qualified way, it was the banks and the "trained" experts were either stupid or greedy because they said that people who would not normally have qualified for a loan could have the money. Look up the definition of "low-doc" and "non-conforming" loans and get back to me.
Draeco, the bottom line, the housing market is what was plumping up the economy this past decade. Sure, these folks should have asked "another professional" what exactly is meant by a low-doc... BUT, they were speaking to professionals! Home purchases with low interest rates were a great investment. Yes, medical bills can add up overnight. Besides, paying higher premiums, co pays, etc... if a family ( I was one) has a catastrophy... an over night little accident can bankrupt a family in a snap! My husband had a serious accident, co payment for the hospital was over $40,000.00!!! Our deductable is low...15% as we are on a great "golden plan".
Dax mentioned in Florida, homes are protected from bankruptcy. This is true...only if the homeowner "homesteads" his property...same in the state of Nevada. In Nevada, a home can only be homesteaded (this may have changed) to about $95,000.00. Florida had a huge mortgage melt down, because developers were allowed to overbuild.
BTW, your Congressional hearings just found that the head of Lehmann bank was paid (not earned) USD$0.5B in the last 7 years. That's $500,000,000 US!. Not bad for stuffing up a company. I should go to the US and get paid half-a-Billion to ruin a bank instead of getting my current salary for doing a good job.
It was just found out AIG execs. took $400,000.00 of the bailout money and went on a nice little holiday...spending spree. Obama is asking that Congress demand they repay the money...and are fired.