Greed

There is no doubt that the main reason for the collapse of the American economy is greed. The catchphrase in the movie, "Wall Street," was "greed is good." The investment bankers and hedge fund managers behind the financial collapse obviously ascribed to that sentiment. After oversight was eased and deregulation was established, the investment bankers were no longer happy with the interest they could make on fees in the traditional ways. Profits from Treasury bills and bonds were conservative and only realized over years. Anxious to make a quick profits and a more robust return on their money, these free-wheeling operators began looking around for better ways to enrich themselves.

They didn't have to look far. They devised a way to buy large bundles of mortgages and break them into smaller bits. Many of the mortgages that they bought had been approved under false bases. For example, borrowers...