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' 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.
Claire A. Hill,
Why Didn’t Subprime Investors Demand a (Much Larger) Lemons Premium?,
74 Law and Contemporary Problems
Available at: https://scholarship.law.duke.edu/lcp/vol74/iss2/4