You cannot reward corporate or individual responsibility.
Did you mean irresponsibility, hugo? if not, please explain.
Not sure how you can blame the banks for giving people car and home loans.
Actually, there are standards that lenders need to apply, meaning proving that the loaner has the capacity to repay at least the principal of the loan amount. The "low docs" and then the "no docs" loans were the start of the rot, hugo.
The lenders assumed that the market bubble would continue to inflate, and after foreclosure, they would profit from lending on the increased value after reselling it. With car loans, the auto is auctioned off for whatever they could get, and the outstanding debt remains, to be recouped in any way possible.
Yes, in some cases credit standards were too loose, but no one had a gun pointed to their head forcing them to buy a house or car on credit.
Come on buddy. If I make regular payments on my credit card, I'm offered upper limit increases every second week. They (banks and sharks alike) were throwing money around. After all, it's just a bunch of zeros with a number at the start.