We gave mortgages to people who couldn’t pay
I used to work for a sub-prime lender. I would look the other way while our LOs and managers would falsify documents, create them from scratch (including W2s), and lie on loan applications. We did a lot of good for some people (self-employed people, especially), but we really screwed a lot of others. Particularly the people in fixed-rate loans that were desperate for cash; we’d take them from a 6.25% fixed, to a 8.75% ARM w/2 points. I’m really glad to have left that industry (and banking in general), but in light of the current economic crisis I always feel a little guilty.