[ktRolster]

In retrospect (as the housing prices have mostly recovered: http://www.doctorhousingbubble.com/wp-content/uploads/2013/0... ), the hosing crisis can be seen as an irrational bubble, with the major problem being that the banks were under-capitalized for the risk they were taking on. After several years of injecting capital into the banks for several years, they are fine. Arguably the banks didn't worry about the risk because they trusted the government would help them out.

[norikki]

> the banks didn't worry about the risk because they trusted the government would help them out

This is euphemistic for the banks stealing money from taxpayers through crony capitalism.

[Godel_unicode]

You're aware that those taxpayers actually got a very good deal, right? Roughly 10% return on investment, we effectively just invested public funds in good companies at cheap prices.

https://projects.propublica.org/bailout/