With the housing bubble, what really happened was the financial goons on Wall St. got the corrupt politicians to allow them to get mortgages for folks who had no money. That way, they (the goons on Wall St.) got their money out of making the loans (they would get folks 110 – 115% or even higher loans). Then, they figured a way to “Package” these loans as “Equities” and pawn them off to larger institutions for servicing. Did you catch that? The goons on Wall St. who made the loans made $BILLIONS$ on the front-end of all those loans and were never bitten by the liability of the poor risk loans!
Same is true now of the Government getting Student Loans for “Poor risk” students. The folks who make the loans get their money from the government to fund these poor unsuspecting kids who about 1/2 of whom these days will never repay their loans. Guess who pays in this case when the loans default? We, the taxpayers! But the financiers, those who make the loans in the first place to our kids in college, they get their money! Again, it’s a case of corrupt politicians allowing financiers to make money from people who have no money! That’s half a $TRILLION$ we the taxpayers will get stuck paying! Well, actually, many of us may already be dead, so those who are still around to pay taxes will be the ones paying off this bad debt.
Kinda makes you wonder doesn’t it?