Please ensure Javascript is enabled for purposes of website accessibility

Ask a Fool: Did Greedy Consumers Sink the U.S.?

By Matt Koppenheffer - Apr 22, 2013 at 6:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Was it consumer greed that brought the housing bubble crashing down on our heads?

In the following video, Motley Fool financial analyst Matt Koppenheffer takes a question from a Fool reader, who asks, "Reports are that the administration is, 'again,' pushing banks to lend to less well-qualified applicants. While many on the right have blamed the bursting bubble on this 'past' practice -- was it broadly a practice or did banks generally exceed just lowering standards to the point of fraudulently punching up applicants to meet standards, issuing the loans, packaging them up, lying about them to investors and getting fat... Debunk the myth that the bubble burst because of greedy consumers."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bank of America Corporation Stock Quote
Bank of America Corporation
$37.02 (0.95%) $0.35

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.