Don't think this is what WE had in mind...

[Danzig]

Originally Posted by Cannon Shell

Congressional pressure on Fannie Mae and Freddy Mac to secure homeowner loans to people who didnt necessarily deserve the loans was what allowed the banks to make such poor choices and decisions. The fact that a quasigovt agency was in effect backing all the loans, bad or good, allowed the banks to go wild with the refinancing and crazy ARM's. While the banks absolutely took advantage and went too far, the politicians courting special interest groups (like acorn) created the atmosphere for this kind of behavior to flourish.

The govt basically said make the bad loans we will cover them, until FM and FM ran out of money.

what i keep wondering, is what interest does the govt have in ramming home ownership down peoples' throats? they turned it from being a dream to being a necessity. if everyone thinks back to what got our current financial mess started, it was housing and the huge loan mess.