http://query.nytimes.com/gst/fullpa...3A0575AC0A96F958260&sec=&spon=&pagewanted=all "Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. " ... "In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's."
guess you don't watch the TV networks, CNN, MSN, etc for they tell the tale that this is all Bushes fault and only the dems can save us! So please don't brother us with facts for the truth does not matter and what we have on TV now is called Pravda Journalism at its finest level.
I am sure there are a number of causes but I think the article points out the big 2...politics and greed.
