Why don't you read Bloomberg's and live in the real world of stats and facts? It's continually updated and it's pro free market.
M.A. Johnson wrote: > Anatomy of a Train Wreck > Causes of the Mortgage Meltdown > Stan J. Liebowitz > October 3, 2008 > > Executive Summary > > Why did the mortgage market melt down so badly? Why were there so many > defaults when the economy was not particularly weak? Why were the > securities based upon these mortgages not considered anywhere as risky > as they actually turned out to be? This report concludes that, in an > attempt to increase home ownership, particularly by minorities and the > less affluent, virtually every branch of the government undertook an > attack on underwriting standards starting in the early 1990s. > Regulators, academic specialists, GSEs, and housing activists > universally praised the decline in mortgage-underwriting standards as > an �innovation� in mortgage > lending. This weakening of underwriting standards succeeded in > increasing home ownership and also the price of housing, helping to > lead to a housing price bubble. The price bubble, along with relaxed > lending standards, allowed speculators to purchase homes without > putting their own money at risk. The recent rise in foreclosures is not > related empirically to the distinction between subprime and prime loans > since both sustained the same percentage increase of foreclosures and > at the same time. Nor is it consistent with the �nasty subprime lender� > hypothesis currently considered to be the cause of the mortgage > meltdown. Instead, the important factor is the distinction between > adjustable-rate and fixed-rate mortgages. This evidence is consistent > with speculators turning and running when housing prices stopped rising. > > > http://www.independent.org/pdf/policy_reports/2008-10-03-trainwreck.pdf --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
