Wow, that's a terrible article, short on facts and long on ideology.
The vast majority of the subprime mortgages doled out were never sold to Fannie or Freddie -- they were bought up eagerly by investment banks who had lax leverage requirements. Many of these mortgages were originated by in-house origination units, so, yep, they knew what they were doing.
Blaming government regulation and lending to low-income borrowers for the financial crisis is like blaming the janitor at JPL for the Challenger exploding.
The vast majority of the subprime mortgages doled out were never sold to Fannie or Freddie -- they were bought up eagerly by investment banks who had lax leverage requirements. Many of these mortgages were originated by in-house origination units, so, yep, they knew what they were doing.
Blaming government regulation and lending to low-income borrowers for the financial crisis is like blaming the janitor at JPL for the Challenger exploding.
Talk about clueless...willfully clueless.