Ryan S
2009-03-23 13:22:14
89. tanstaafl:
Those points about the CRA’s impact are valid, but I wonder how they impacted the decisions to create MBS’s, CDS’s, et al. As I said before, if the government stipulated that you received money for loanee’s that defauled, then there really is no point in getting an MBS.
The real gripe is saying that the CRA was the sole cause. When other not banks were forced to make loans, it doesn’t look like they or the likes of Fannie Mae were forced to initiate MBS’s. Then activities like CDS’s likewise were all the more ridiculous.
