Would someone from the financial world please enlighten me regarding the current mortgage loan crisis?

1. First, you give loans to customers who would not, under normal circumstances, ever come close to qualifying for a mortgage.
2. Second, you sucker them in by lending them the money at a low interest introductory rate.
3. Third, then their introductory rate ends and the balloon rate is so high that thousands of home owners can not now afford to make their mortgage payments (and as a side light their home values have declined in the process).
4. Fourth, now you want to literally kick them to the curb because they are defaulting on their loans when many of them would just like to refinance at a lower rate so they can make their payment and keep their home even if the value has declined.

QUESTIONS?

WHERE IS THE SANITY IN THAT? WOULD YOU RATHER FLOOD THE HOUSING MARKET WITH FORECLOSED HOMES WHICH WILL SIT STILL FOR MONTHS, IF NOT YEARS, NOT EARNING A DIME VERSUS ACCEPTING LOWER TERMS FOR THOSE WILLING TO WORK WITH YOU IN ORDER TO KEEP A ROOF OVER THEIR HEAD? YOUR INDUSTRY CREATED THIS MESS. I DO NOT BELIEVE THE FEDERAL GOVERNMENT (AKA US TAXPAYERS) SHOULD SUPPORT YOUR IDIOTIC GREED AND BAIL YOU OUT! STEP UP TO THE PLATE AND RESOLVE THIS MESS YOURSELVES.