Why are some people able to buy a house with little money or bad credit?
This is what caused the current global financial crisis. Banks that wrote the terms of mortgages were bundling the mortgages and selling them up the chain to bigger banks and mortgage houses, especially in the USA (this is how Freddie Mac and Fannie Mae got in trouble). Because the banks who gave out the mortgages did not have to worry about the possibility of the loan recipient not being able to pay the money back, they were less careful and more driven by making a quick buck. And the big mortgage houses and big banks buying the bundles of mortgages good and bad were operating on the assumption that most people would pay the loans back, they assumed this was a good investment. And then they started with all kinds of derivatives based on the bundles of mortgages. Meanwhile, the financial companies buying and selling mortgage bundles and derivatives were also acting as insurance companies and, in some cases, as giant banks like Bank of America that would be involved in these Wall Street
