patrick.net

HappyGilmore says

That's nonsensical. Banks loan out money as an investment and only do so when their analysis shows it will meet an ROI and generate profits. They will not make unprofitable loans just because they have additional money.

Banks typically originate loans and sell them to government-sponsored enterprises (GSE) such as Fannie Mae and Freddie Mac. The banks don't care if they are bad or unprofitable loans since they sold to someone else who is ultimately responsible for them. Private money lenders and other lenders who actually hold the loans they originate will be much more concerned with the quality of loans they are making and the current state of the real estate market.

A major reason for the real estate crash in 2008 was due to banks making terrible loans and then passing them off to other entities. Make the commission then sell off the garbage loan.

Reality says

It's the same as when government encourages women and minority to buy stocks at the stock market cycle peaks.

I am neither woman nor minority, but my retirement fund manager was haunting me just before market crashed telling that I should immediately buy stocks (I am in bonds now). I wonder how he could have timed the worst time to buy with such precision...