

What Caused the Loan Crisis - gibsonf1
http://thinkingobjectively.blogspot.com/2008/10/what-caused-loan-crisis.html

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aaronsw
For a more reality-based answer, try <http://howdidthishappen.org/>

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gibsonf1
I looked at that site, and saw mainly mention of the role derivatives played.
Honest question: would it have been possible for the derivatives to securitize
bad loans if Freddie and Fannie weren't guaranteeing them? Correct me if I'm
wrong, but it seems the derivative crisis is an effect of the bad loans
guaranteed by Freddie and Fannie, not the cause.

Some interesting video of earlier attempts to put the breaks on the problem
that were unsuccessful in congressional hearings:
[http://www.youtube.com/watch?v=68D9XrqyrWo&feature=relat...](http://www.youtube.com/watch?v=68D9XrqyrWo&feature=related#)

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MaysonL
Compare the default rate for Freddie/Fannie loans with those for non-
Freddie/Fannie loans. No contest.

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quoderat
Of course it had nothing to do with that 30 to 1 leverage the investment banks
were undertaking.

Or lack of regulation.

Or lack of enforcing exiting regulation.

Or Greenspan's successive bubble-blowing.

No, couldn't be any of those things.

I can't believe anyone voted this crap up.

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kqr2
thinkingobjectively is a rather ironic website name for this article.

It is completely biased against Democrats and ignores any Republican
contributions to the debacle.

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DenisM
Summary of the article: it's all Clinton's fault!

Flagged.

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motherwell
SIGH!

Should be retitled "How to alienate Hacker news"

