So the GSE’s widening their market caused the housing bubble? This was the PRIMARY causal mechanism to the biggest GLOBAL market failure of all time? Really? that is what caused every bank in the western world to forget underwriting standards? Remember this is global. The forced banks in spain and Ireland to lend money to anybody? They forced appraisers to inflate values? so forth and so on… Boy those GSEs wield huge power. Amazing.
Surely, the GSEs widening their market was from some misguided bureaucrat trying to help poor people. We know the private industry would have never advocated this.
