[forgetsusername]

>They mixed mortgages which were extremely unlikely to be repaid

This is an easy claim to make after the fact.

>However, these bonds would be valueless if any of the securities that made them up defaulted.

Not true at all. The bonds didn't become valueless. In fact, many of these bonds were purchased by the Fed, who made money off them. The issue was CDS' being triggered on defaulting mortgage bonds.

>They sold the packaged bonds a AAA-rated securities without disclosing the likelihood that they would default.

Did they not? Have you read the prospectus'?

Look, I'm sure there were many criminal actions here. But the uninformed, populist overreaction to the financial crisis by people who are unwilling to take personal responsibility is sad.