silly question..wot exactly is a subprime loan, page-3

well they lend money to people who cannot afford to repay the loan, they are backed by equally dubious types who cannot afford to lend them the money, loan shark types, like a pyramid scheme of dubious loans, then some really smart people packaged up these loans, gave them another name and sold them to hedge funds, fund managers and other people who thought they could outsmart each other............now the loans need to be renewed, the borrower has defaulted, the house prices have not risen, and everyone involved wants to give the problem to someone else......simple really