24/7 Newsfeed

Put Reason 24/7 on Your Site

RSS

Follow Reason 24/7 on Twitter and via RSS

Government Policy the Major Villain in Mortgage Meltdown

Mortgage-backed securities loaded with "toxic" subprime loans fueled the housing bubble and crash. Many blame Wall Street bankers for the MBS debacle. But actual data show that government policy was the main culprit.

Packages of mortgages sold to investors were a safe investment for decades. It wasn't the creation of mortgage securities that triggered the subprime boom. Rather, government policy unleashed subprime into the MBS market.

Source: Investors Business Daily. Read full article. (link)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

advertisement