[quote=aldante][And Paul was right on his prediction of the bubble. He was dead wrong on the cause.
SK please explain this statement? How was RP dead wrong?[/quote]
He predicted that it would all be related to the GSE’s. The GSE’s were a small player in the creation of the bubble. Their market share shrank, and their net portfolio size was stagnant during the bubble years. It was primarily non-GSE’s and non-federally chartered banks that fueled the bubble. (What fueled the lenders is a different piece of the puzzle.)
