Creditors failed to discriminate based on creditworthiness and loaned lots in bubble markets. It wasn't government making the loans, it was free market capitalist, who by the way were laughing all the way to the bank as they made junk loans that people at Goldman Sachs and elsewere were rolling into highly rated bonds and selling to people who didn't know what they were buying. Greedy capitalists bear more fault in this fiasco than meedling politicos, though both should have learned a lot.
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If Fannie Mae and Freddie Mac were not in existence, none of this mess we are in would have ever happened. The bankers got greedy and took advantage of the situation but that happens all the time when the government intereferes in an industry. The unethical will always find a way to capitalize on a regulation and in the long run, it will make things worse. Shady/greedy people are everywhere. Fraud is used equally by the poor and the rich, its why all government programs are ripe with fraud from those getting the kickbacks and big salaries and pensions on top and those trying to get handouts on the bottom.
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If Fannie Mae and Freddie Mac were not in existence, none of this mess we are in would have ever happened. The bankers got greedy and took advantage of the situation but that happens all the time when the government intereferes in an industry. The unethical will always find a way to capitalize on a regulation and in the long run, it will make things worse. Shady/greedy people are everywhere. Fraud is used equally by the poor and the rich, its why all government programs are ripe with fraud from those getting the kickbacks and big salaries and pensions on top and those trying to get handouts on the bottom.
