So they couldn't see it coming !

[mel]

All this bks about credit crunches, global downturns, economic cycles etc etc, well when things like this come to light from 1999, you do have to wonder!

http://www.coyoteblog.com/coyote_blog/2008/09/im-s...

[MikeyT]

Chilling words contained in there:

"In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980s."

[V8mate]

Article said:

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people

So now we know who's to blame too

[NoelWatson]

mel said:

All this bks about credit crunches, global downturns, economic cycles etc etc, well when things like this come to light from 1999, you do have to wonder!

http://www.coyoteblog.com/coyote_blog/2008/09/im-s...

When something goes up at a rate way in excess of its long term mean, there is a very good chance that the asset class in question is in a speculative bubble. People will say "it is different this time", and confused old men will claim they can't see a bubble and live off book royalties for years afterwards. These bubbles always end in tears.