Originally Posted by Rochard

I really believe the banks were the cause of the housing crash. They discovered that the more they loosened up the credit qualifications the more houses they sold, and the more houses they sold the more money they made. This decreased the amount of available homes yet made them affordable to more people... More people could buy houses and the supply was quickly being sold.

At some point the banks couldn't lose.... If they sold a house to someone who couldn't afford it, they kicked them out, jacked up the price, and sold the house to the next person for more money.