2. The FMs were required to lower their standards for loans they would buy. Subprimes became a nice profitable asset for both the GSEs and for the banks. Without FMs' cooperation, the number of subprimes would have been much much less.
3. No one said that every subprime loan was in default. But having more than 10% in default is enough to bring down any bank, and it did bring down the FMs.
4. The Bee papers are liberal rags and print lies regularly.
I think OPEC overpriced oil so that it affected the global market. And no one was buying anything, or going anywhere. Business was way down in many sectors. That is what started this whole mess. There are always home foreclosures. That is not new.