We know that the Greatest Financial Crisis Since the Depression was caused by the government. Fannie Mae and Freddie Mac bought and guaranteed mortgage loans as long as they met their criteria. Their criteria did not include things like a down payment or even any documentation as to a borrower’s ability to pay it back. So, when the bubble finally burst people found that they had been sold “junk”. The mortgages backing the securities were junk and the taxpayers, that is you and I, were stuck with the guarantees.
The Republicans are trying (once again) to reform Freddie and Fannie. And, once again, the Democrats are resisting.
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