Capital New York

jcconnor commented on Bloomberg: 'Plain and simple,' Congress caused the mortgage crisis, not the banks

Countrywide Home Mortgage initiated 60% of the subprime loans at the time of the credit collapse and was under NO CONGRESSIONAL MANDATE to issue those. Hell, they weren't even regulated at all. So, how again did Congress, Fannie or Freddie, through the CRA, cause this? Neither Congress, Fannie nor Freddie created a single CDO or sold insurance (as a CDS) for those same CDO's. So how did they create this mess? Neither Congress, Fannie nor Freddie rated those same CDO's (made up of B or BBB rated mortgages) as AAA. So how did they create this mess? This was completely and irrevocably a mess created by Goldman Sachs and the other Wall Street banks and investment houses assisted by Moody's, Fitch and S&P. Facts are so inconvenient sometimes.

Posted on November 1st, 2011 11:40pm