Scott,
I love it!!! You are exactly right!!!
Last year I started reading about CDO's, MBS's, ABCP's and SIV's and had to use alot of dictionaries to clear up the terminology I didn't understand, THEN I called my brother who self educated himself on the stock market, and has been very successful investing his own money (he doesn't trust stock brokers), to answer all the questions I had.
He basically said the same exact thing that you did. I was laughing my a-- off. I'd ask him for a simple explanation and that is what he gave me.
Its all about the greed and people always wanting more than they can afford.
Pretty basic.