Lack of Regulation didn’t cause the Financial Crisis… Policy Did!

This was a great panel discussion about Peter Wallisen’s book “Hidden in Plain Site” which is about the cause of the recent financial crisis, and how we are likely to be headed back into one. As a dissenting member of the congressional inquiry commission he presents staring data that it was caused by Federal Policies forcing Fanny May & Freddy Mac to buy mortgages serving certain target affordability classifications- which they in turn responded to by turning off their underwriting standards and buying scads of sub-prime mortgages (previously they had been famous for buying only prime mortgages).
This single policy began inflating the bubble in the mid 90’s

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