The most significant causes of the credit crisis were innovation in mortgage securitization coupled with almost no regulatory oversight (because of ideologues who opposed oversight and regulation). This led to lax lending standards (liar loans, DAPs, widespread use of Option ARMs as affordability products, etc.) and excessive speculation.
Oh well ... I agree the White House missed the story, but the idea that "no one saw" the problem coming is nonsense.
Monday, December 22, 2008
sorry try again...
Calculated Risk responds to White House nonsense
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