Your exactly right and I agree. Just passing along the outlook and opinions of FCU president and FNMA stockholder. Simply had the opportunity to pick his brain and that was simply his opinion.
Who initiated the bad policies of home ownership for all which ultimately led to a loosening of bank lending practices?
"So I was reading "A random walk down Wall street" by Burton G Malkiel and guess what the government did play an active role in the housing bubble. Here is a paragraph
Page 102 "The government itself played an active role in inflating the housing bubble. Under pressure by congress to make mortgage loans easily available, the federal housing administration was directed to guarantee the mortgages of low income borrower. Indeed almost two thirds of the bad mortgages on the financial system as of the start of 2010 were brought by government agencies or required by government regulations. The government not only failed as a regulator of financial institutions but also contributed to the bubble by its own policies. No accurate history of the housing bubble can fail to recognize that it was not simply "predatory lenders" but the government itself that caused many mortgage loans to be made to people who did not have the where-withal to service them."
Don't believe me. Read the book!!! FNMA long!!!' She ain't going nowhere!!!!"
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