In response to:
Flat,
76% of all loans were sold to Fannie and Freddie, government sponsored enterprises, who bundled them and sold them.
The 24% of loans made by the private sector were following the lead of Fannie and Freddie.
Without government regulation, the collapse never occurs.
For weeks President Obama has traveled the country delivering speech after speech asserting that if implemented, the so-called “Buffett Rule” would “stabilize” our national debt over the next ten years. In reality, however, it would do almost nothing to solve our lingering budget woes or pay off our national debt. Nevertheless, his unrelenting tax-the-rich mantra seems to be resonating with voters. According to the latest Gallup poll, 6 in 10 Americans support the Buffett rule – named for billionaire investor Warren Buffett – a policy that would impose a 30...
_____________________
So then why did the Dems not want to regulate them?
James A. Johnson and Franklin Raines did a great job in involving the federal government in ensuring they were making money hand over fist with bonuses by lowering lending standards for Fannie Mae.
Subprime lending offered high-cost loans to the weakest borrowers during the housing boom that lasted from 2001 to 2007. Subprime lending was at its height from 2004 to 2006.
Federal Reserve Board data show that:
* More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
* Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
* Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that’s being lambasted by conservative critics.