Give 'em a Break

While not a fan of Big Banks I must say it is disheartening that no one has come out to explain what and why they did what they did.
Is it “betting on failure” if I buy a stock and then buy a put option? Am I hoping for disaster if I pay cash for a car and then buy insurance? Is it wrong for an insurance company to buy insurance on an insurance policy it has written? No, no and no!

Not knowing why they did what they did, we only assume the worst. How about cutting them some slack? Everyone who bought what they were selling was supposedly the brightest of the brightest.
I am no MBA but I know if someone cannot afford a 10% down payment, they cannot afford to buy the house.

The people who bought the stuff were not a victim of Big Bank, they were the victim of their own greed. Risk and rates go hand in hand. If you want high interest rates, you take on more risk.

It is not a revelation that the rating companies went along with it. Anytime you pay someone to give you a rating, it probably isn't without flaw. Ask the car companies how they get the "Five Star Rating" or the "Best in Class" awards.