06-16-2016, 11:39 AM
(06-16-2016, 12:51 AM)StLucieBengal Wrote: Na it crashed because the gov backed loans. The banks have them out at will because the gov assumed the risk.
If we don't have Fannie or Freddie we don't have the housing bubble.
Wrong again.
Lenders made the loans because they were able to sell off the risk through derivative investments. This was possible because of lax federal regulation. Almost every one Wall street from the investment banks to the rating services were allowed to carry out deceptive practices.
