Mark1369 Wrote:
Nov 12, 2012 1:47 AM
You don't understand the influence of Fannie and Freddie along with the power of the Federal Gov't had on all lenders. The point is that it was gov't intervention that caused the collapse because gov't can't adjust fast enough to changing conditions in the economy. As long as companies knew the gov't would bail them out on sub-prime mortgages they were no longer constrained to protect their investments IE mortgages. When you add to that the federal gov't pushing home ownership because of the mistaken belief that it solves many of societies problems then we have a market out of control because of gov't regulation.