“In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing credit requirements on loans that it will purchase . . . [to] encourage . . . banks to extend home mortgages to individuals whose credit is generally not good . . . . Fannie Mae is taking on significantly more risk.” ~ New York Times, September 30, 1999
The main cause of the current economic crisis is the boom-and-bust cycle that was caused by the Greenspan Fed. Years of artificially lowered interest rates caused trillions of dollars in malinvestment in real estate and other industries, and now we must endure the bust. But crackpot egalitarianism within the Fed and, indeed, in the entire Washington establishment, has made the crisis infinitely worse.
Read Full Article: https://thewashingtonstandard.com/how-crackpot-egalitarianism-caused-the-sub-prime-mortgage-crisis/
