General Discussion

Most loans are quickly flipped to third parties, often rolled into a pool; in any case, the original lender doesn't have to care about the quality of the credit, because the original lender will be long out of the loop by the time any default occurs.

We've already sitting on the biggest credit bubble in history without adding even more and lower-quality debt to the situation.

What's needed is to restore labor law to what it was before Reagan, so that workers can organize to demand pay commensurate with the doubling in productivity that's taken place since then,
AND also to roll back all the income tax changes and financial deregulation that have taken place since Reagan (i.e., re- regulate, including restoring Glass-Steagall, regulating credit derivatives much more stringently, outlawing LBO's and naked shorts, etc. etc.), which have also contributed to the enormous concentration of wealth – which in turn has driven up housing prices as the obscenely rich snap up hard assets in which to park their gains.