dw57

The Bubble Years and Beyond

while part of his thesis might be true. I don't think the GSE"S had that much of an impact. They weren't writing the notes. They just made the stupid decision to buy notes that didn't originally meet their standards. had they not bought them, some body else would have so they same scenario would have happened. I think there are two causes. One wages have never recovered from the last recession, causing a consumer based economy to live on credit. The other was a really stupid group think, house prices had to go up, they never ever go down.