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For a more reality-based answer, try http://howdidthishappen.org/ http://howdidthishappen.org/
by aaronsw 18y ago
For 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.