DVSentinel
DP Veteran
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- Oct 20, 2011
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- The Republic of Texas.
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http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/120xx/doc12032/12-23-fanniefreddie.pdf
The banks have only themselves to blame on the bubble and the poor securities they generated.
All of which did start with Fannie/Freddie. A law was passed in the 1990s to seek out means and to encourage low-income home ownership which authorised Fannie/Freddie to enter the sup-prime lending market in housing. Zero down payment loans and Interest Only loans started as a result of this government sponsored policy. Variable interest loans existed prior to this, but when coupled to the new loan programs, it was catistrophic.