If lenders R disconnected from debt borrowers as was done in subprime, how is that responsible debt lending?

Question

Stated differently: If lenders are disconnected from the debt borrowers as was done in subprime, how can that be considered a good lending model?

"That is capitalism, the system you love, so don't complain." I think the system has become predatory and Gov't isn't doing its job the way it is supposed to under BUSH43.

Answer 1

It ain't. They shift the risk onto mug punter investors and their mates in the financial institutions. This toxic crap can then end up in your pension fund. That is capitalism, the system you love, so don't complain.