Ahh… there is a higher power and she has a profound sense of humor…
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This entry was posted on September 16, 2012, 2:38 pm and is filed under Romney. You can follow any responses to this entry through RSS 2.0.
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CAUSE OF GREAT RECESSION
HOUSING DISASTER REVIEW
Fannie and Freddie were placed in Conservatorship in 2008 by Paulson.
All toxic home loans were pre-2008 Crash.
NY Times wrote regulations were too tough.
F&F were allowed to continue buying housing derivatives.
F&F had caps on home loans they could buy. 1980=$93,759—1988-$153,100—2002–$300,000-
2008-$729,750. This allowed banks to dump toxics on F&F.
There was little supervision on F&F. They bought home mortgages from the banks then resold them to investors. They never created a mortgage. They bought them. The bigger the loan the bigger the profit. We built homes too large—too expensive for declining middle class incomes.
They were sold worldwide as Triple AAA but were toxics. Over one half the mortgages were by private lenders. Banks were begging for mortgages they bundled into Derivatives and sold worldwide. Much fraud permeated the entire system. Millions of foreclosures hurt millions of
families. It created the Great Recession from which we will suffer for years.
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