Sowell: How government legal threats created the sub-prime mortgage market. Naturally, they didn't want to hold on to that junk, so they packaged it up, and sold it to willing buyers. Totally logical. If you think there aren't people out there who want to buy junk, just check out eBay some time. They once had a booming market in Beanie Babies. Caveat emptor.
Ed. notes:
Related from neoneo: Bubbles and the Tragedy of The Commons
Related from Dino: Grifters get a second chance