coveyrise Wrote:
Dec 12, 2012 8:51 AM
When Fannie and Freddie were making home loans of 105% to people who didn't have the income to afford what they were buying it should have been clear to anyone who looked that it could not last. People with moderate incomes were buying homes well out of their price range because they didn't have to have any down payment or even cover their closing costs. With zero equity and marginal incomes all it took was a slight down tick to bring down the entire scheme. Unlike the Dot Com Bubble the Housing Bubble was actually a fart in the bath tub brought on artrifically by loaning money that should have never been loaned in the name of FAIRNESS.