Since this financial crisis has begun, we have been told over and over again that it was caused by "subprime mortgages" and homeowners (primarily poor and minorities) who bought houses that they could not afford. When the bottom dropped out, these were the people to blame.
Well, guess what? It's the one Big Lie that's being pushed out there to cover the asses of the executives of the financial institutions, credit rating agencies and poor government regulators. The real story is more complicated, but can be described this way: Companies were making huge profits over questionable deals, but ignored the flashing warning signs of a bubble that was eventually going to burst.
Anyone who says that we could not have seen this coming either doesn't understand what happened or is flat-out lying.
You be the judge...take a look at this PBS video which provides the most lucid and simple breakdown of exactly what occurred:
Crisis and Credibility
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