Sandi,

I agree with you ... but there's more to the story than that.

For instance: back in 1992, the U.S. government began requiring mortgage lenders to make about 40% of their loans to low-income applicants. And that percentage has increased to where it is now over 50%.

In other words, the federal government mandates that mortgage lenders like AIG lend more than half their mortgage loan dollars to the individuals who are most likely to not be able to repay the loans. A lot of people predicted a bad result from that policy.

Richard Dennis