In the progression of elegant ways to skin the problem of making money, making money from those that do not have it is a good trick.
Loaning money to buy a house someone can't eventually pay for brings debt money into existence. Private gain as long as the poor pay so maybe they were not so poor after all even when interest goes up and they have less to spend elsewhere. Public loss when they don't.
Make side bets on whether or not the loan will be repaid.
Bucket Shop?
http://en.wikipedia.org/wiki/Bucket_shop_(stock_market)
Rachel Maddow: Can you find somebody to talk me down on this? Maybe that guy behind the curtain?
It was not the mortgage loan that caused the problem but the bucket shop bets it enabled and the winners of the bets now want to be paid?
Paid in bailout money?
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