'I hear your complaints,' Bloomberg said. 'Some of them are totally unfounded. It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp. Now, I'm not saying I'm sure that was terrible policy, because a lot of those people who got homes still have them and they wouldn't have gotten them without that. 'But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will.
"'They were the ones that pushed the banks to loan to everybody. And now we want to go vilify the banks because it's one target, it's easy to blame them and Congress certainly isn't going to blame themselves. At the same time, Congress is trying to pressure banks to loosen their lending standards to make more loans.'The subprime thing is in the process of being repeated.
Then banks had to concoct ways to make that worthless mortgage worth something to them. So they found ways to sell what was worthless to a bunch of dupes who they lied to about what they were selling; and then those dupes figured out that they were dupes, and they repackaged the whole thing to another set of dupes. And that kept happening, until finally they run out of dupes -- just like the end of a Ponzi scheme. At the end of the day, there weren't any dupes left to buy these worthless mortgages.