To my mind this is fraud, plain and simple. These are giant Ponzi schemes, and like all Ponzi schemes, they depend on the greed of the investors as well as the fraudulent intent of the people who run them. All the people involved knew these loans weren't worth their face value because of the risk, but instead of appraising them honestly, they deliberately did the opposite in the hopes that the schemes would continue to draw in new suckers.
Brilliantly summarized!!!!!!