Ace of Spades dug up the original New York Times article from Sept. 30, 1999 in which Fannie Mae eases restrictions on home loans: Fannie Mae Eases Credit To Aid Mortgage Lending.
Fannie Mae was amazingly honest about their intent. The program
“… will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.”
Giving credit to folks whose credit isn’t good enough? No problema, holmes (sounds nicer than ‘no sh– sherlock’). Think that might get you into trouble eventually?
Moe Lane at Redstate.com posted this excellent video summary of the root causes of the current economic crisis.
Update: For a summary of events leading up to the crisis click this link: Investors’ Business Daily.
Update: What the freak? WaMu Gives New CEO Mega Payout as Bank Fails.
That’s right, $20 million for 17 days on the job … and his company failed.
