Again you guys are addicted to the negativity. Adelaide Bank is small fry, low doc may have accounted for a decentish percentage of loans but they were not securitized and on sold in the manner used by the likes of Lehman Brothers. Plus the issue here is how many of these are under water?
Get a grip and back to reality and look beyond the media fed hyperbole and grow up in your responses.
If we are talking ethical behaviour then there is no argument, the behavior of the banks and brokers was abhorrent but certainly not confined to these times in Australia. The loss of money by extending borrowing capacity for speculative property investment is the issue. Most who were persuaded to take these loans must have known something about what they were getting in to. Political correctness gone wrong is to blame in that at what stage do you stop lending to the elderly. Some folk in their 90's are a better risk than many of the give up before you start beginners on this site.
