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What Caused the Loan Crisis
- motherwell 18y agoSIGH! Should be retitled "How to alienate Hacker news"
- DenisM 18y agoSummary of the article: it's all Clinton's fault! Flagged.
- aaronsw 18y agoFor a more reality-based answer, try http://howdidthishappen.org/ http://howdidthishappen.org/
- gibsonf1 18y agoI looked at that site, and saw mainly mention of the role derivatives played. Honest question: would it have been possible for the derivatives to securitize bad loans if Freddie and Fannie weren't guaranteeing them? Correct me if I'm wrong, but it seems the derivative crisis is an effect of the bad loans guaranteed by Freddie and Fannie, not the cause. Some interesting video of earlier attempts to put the breaks on the problem that were unsuccessful in congressional hearings: http://www.youtube.com/watch?v=68D9XrqyrWo&feature=related# http://www.youtube.com/watch?v=68D9XrqyrWo&feature=relat...
- MaysonL 18y agoCompare the default rate for Freddie/Fannie loans with those for non-Freddie/Fannie loans. No contest.
- kqr2 18y agothinkingobjectively is a rather ironic website name for this article. It is completely biased against Democrats and ignores any Republican contributions to the debacle.
- quoderat 18y agoOf course it had nothing to do with that 30 to 1 leverage the investment banks were undertaking. Or lack of regulation. Or lack of enforcing exiting regulation. Or Greenspan's successive bubble-blowing. No, couldn't be any of those things. I can't believe anyone voted this crap up.