[quote=CA renter][quote=curiousmind][quote=SK in CV] The GSE’s didn’t loosen their standards and get into the subprime market until late in 2006 By that time, the crash had already begun.[/quote]
HAHA![/quote]
SK is right.
The GSEs were actually shrinking their portfolios because of the accounting issues earlier in the decade. It wasn’t until everyone (in the right places) knew that the housing/credit market was going to collapse that the GSEs were told to expand their portfolios, buy up riskier securities, and increase loan limits.
Look it up.[/quote]
YES now this leads to my theory that they (TPTB) knew exactly what they were doing.
Not that I am saying there was a hidden deal with the treasury at the time that said,
Hey banks !! were in a little pickle here, and need a distraction badly, let anyone borrow as much as they want and we will make sure you are paid back,
I mean I did not say that or anything like that..
