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THICC_DICC_PRICC t1_j6af81v wrote

Reply to comment by Past-Adhesiveness150 in Found some old Reddit threads from 15 years ago talking about the 07-08 recession by Fantastic_Bar3109

You left out the part where the whole subprime lending thing was driven by the government, either through Freddie and Fanny, or through putting regulatory pressures on lenders(they downgraded the credit ratings of banks that didn’t participate). Started under Clinton, expanded under Bush. It was widely bipartisan so no one ever stopped to ask some questions if it’s sustainable. It should surprise absolutely no one that congress investigated itself and found nothing there.

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greenerdoc t1_j6ajdew wrote

People always seem to forget that homebuyers amd investors were also are guilty of FOMOing into buying property, leveraging up on their bets, taking loans they had absolutely no business taking out, buying houses they knew they couldn't afford.

This wasn't solely a government or bank thing. What made this work was that everyone was able to pass the risk down to the next party in line because the mortgage credit rating system was fucked (someone rated risky surprime loans as safe as the traditional mortgage because the thought was that everyone pays their mortgage, historically)

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Past-Adhesiveness150 t1_j6b9shj wrote

It's the American dream. Like I said, people didn't think that experts... the banks, would give them more than they could afford.

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