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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Hoa Hao who wrote (287842)	11/3/2010 12:07:43 PM
From: Les H	Respond to of 306849

The nation’s largest provider of mortgage financing was under assault, as authors Bethany McLean and Joe Nocera show: Subprime mortgage originators had eroded Fannie’s lock on the secondary mortgage market, investors were on edge, and the Bush administration was pushing it to guarantee yet more loans for low- and middle-income Americans. So Fannie waded into the subprime market, helped inflate the housing bubble and ultimately landed what has been called “the mother of all bailouts.” The truly sad thing is that none of this really helped low-income Americans to buy homes, McLean and Nocera say. “What was the point of it all?” they ask, citing evidence that only some 9 percent of all subprime lending between 1998 and 2006 went to first-time home buyers. “The rest were refinancings or second home purchases,” and foreclosures soon wiped out ownership gains made during the bubble. So much for George W. Bush’s “Ownership Society.” bloomberg.com