Who is to blame for the subprime mortgage crisis?

Answers:1   |   LastUpdateAt:2012-09-19 16:30:04  

Question
elcapitain
Asked at 2012-08-21 11:01:25
This is something I found online ... I think it sounds pretty conservative biased ... let me know what you think: MedlinePlus MedlinePlus 1997 MedlinePlus MedlinePlus Fannie Mae is a GSE ( government sponsored entity ) regulated by Congress . ? Fannie Mae buys mortgages from other companies. MedlinePlus ? It is backed by taxpayers for all losses , but keeps all profits . MedlinePlus ? President Clinton loosens Home Loan Requirements . MedlinePlus MedlinePlus 1998 MedlinePlus Banks ? Start making thousands of bad loans , 0 down , no documentation , for 120% ! ( 1998
Answer1katelynn maosnAnswered at 2012-09-19 16:30:04
That's all pretty accurate , but leave out a very important point . Over the last 5-6 years, Democrats have insisted that Fannie - Freddie policies were sound , and the entire structure was in a good financial situation . This was clearly not true , so they were very stupid or " decision . "
MedlinePlus However, recent years Republicans have been warning the public over and over that it was a house of cards to collapse . In May 2006, McCain , and nearly every other Republican senator signed a public letter warning that Fannie and Freddie were in deep trouble and needs to be fixed . There is a link that shows the letter with signatures. Not a single Democratic senator signed the letter .... not one. MedlinePlus MedlinePlus Obama was the largest recipient of Fannie - Freddie "donations " in recent years , after ( Sen. ) Chris Dodd . Gee, I wonder why he would not sign the letter ? MedlinePlus MedlinePlus It's pretty clear whose fault was that, if one is only willing to read the file .
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