Ice

Could Frannie Have Prevented the Housing Bubble?

IMO the main reason we had a housing bubble beside Wall Street greed was the non-recourse mortgage system. This allowed speculators to enter the market with a free put. This made every family a speculator which did not carry its own downside risk. This create jingle mail, this creates people running away from spec' houses.

I am surprised how little attention this aspect of the credit crunch gets in the general media, in the blogs and by the opinion leaders (like yourself)

Is the U.S. Banking System Safe?

may I add to the list of excellent economy writers the team from Pimco. Bill Gross and Co have been on the subject as long as John Mauldin!