JoeB131
Diamond Member
Except nobody said to loan to Johnny Foodstamp or Mary Welfare. There was no such order. Those who qualify for food stamps and welfare were not candidates for conventional home loans. They would only qualify for non-conventional loans like the ones that led to the financial crisis. Privately issued loans.
Privately issued loans freddie and fannie were eager to buy.
Yeah-just like other investors. Who didn't necessarily understand what these bundles were. Which is why the problem was so widespread.
But you see, it was their JOB to understand what the bundles were. I mean, seriously, that was their excuse?
They understood perfectly well what they were buying. They simply didn't care. As long as they made their money and got out before the roof caved in.
Johnny Foodstamp got these loans because the CRA said to make them and Freddie and Fannie were willing to buy them up. Which is what happens when you let the government start dictating markets.