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To: org.whodat
As one who worked in the mortgage industry during this entire fiasco I can tell you that Fannie/Freddie policy, steared by CONGRESS, was the major culprit.

Remember the "refi boom" 2001-2002? Instead of a return to "normalcy" in the mortgage markets when the boom ended, Fannie/Freddie launched an increasingly aggressive series of subprime mortgage products. That lead to inflation in housing prices, and the eventual crash of the housing market due to non-performing loans.

I don't know how you can say CRA applied to banks and not mortgages when CRA dictated the number and kind of mortgages banks were required to issue.

There's a very good video called "Burning Down the House" that provides a summary of these events:

http://www.youtube.com/watch?v=1RZVw3no2A4

24 posted on 11/22/2008 10:02:42 PM PST by GVnana ("I once dressed as Tina Fey for Halloween." - Sarah Palin)
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To: GVnana

http://www.numa.com/ref/faq.htm


31 posted on 11/23/2008 3:37:34 AM PST by org.whodat (Conservatives don't vote for Bailouts! Republicans do!)
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