The subprime crisis would never have occurred had investors not been such enthusiastic consumers of subprime securities. The investors now say, somewhat self-servingly (but probably correctly), that they did not understand the securities -- securities for which they were willing to pay very high prices. Investors\u27 willingness to purchase these securities on terms that were favorable to the sellers, and unfavorable to them, presents a considerable puzzle. Investors do not want to miss out on the next big thing
