[dangus]

You are correct: I wrote, “”Anyone who blames Ambition, Greed and Corruption” on the failure of a system...”” when what I meant was “Anyone who blames Ambition, Greed and Corruption” FOR the failure of a system...”

Fannie Mae absolutely for decades bought up mortgages. THAT’S not what created the housing collapse, though. In fact, it probably minimized the Savings and Loans crisis of 1991: the S&Ls had fewer bad loans, and a larger entity, more capable of dealing with the blows took those blows.

Fannie Mae functioned to minimize the effect of any of a number of loans taking down a smaller financial institution. We can debate whether that is a proper role for a government agency, or a government-supported private agency. But what killed it was the sheer volume of defaulting loans, caused by regulations which required banks to make bad loans.

[rlmorel]

I understand. I think we agree on basic points, that the loans Fannie Mae had been buying for decades didn’t bring things down.

It was what happened, starting with the seed planted by liberals 1n 1977 by the Community Reinvestment Act.

Thanks for the civil discussion, dangus.

[Ol' Dan Tucker]

But what killed it was the sheer volume of defaulting loans, caused by regulations which required banks to make bad loans.

The government did not force the banks into the illegal alien market.

Banks wanted to tap into that market, so put politicians into place (Bush, for example) who would do their bidding.