Thursday, May 05, 2011
Who blew up the housing market?
What emerges from new research is something quite different: government agencies now look to have guaranteed, originated or underwritten 60% of all "non-traditional" mortgages, which totaled $4.6 trillion in June 2008. What's more, this research asserts that housing policies instituted in the early 1990s were explicitly designed to require US Agencies to make much riskier loans, with the ultimate goal of pushing private sector banks to adopt the same standards."
Oops. Quick, propose bringing back the short sale tick test, that should distract them!
Labels: economics
