No, the affordable housing push didn't cause the subprime crisis AND it's not Barney Frank's fault eitherQuicklink submitted by Amanda Lang Permalink
Become a Fan
|It's one of the biggest misconceptions about the housing crisis: the belief that the government's policies to promote affordable housing -- particularly through Fannie Mae and Freddie Mac -- fanned the flames of the subprime mortgage market, ultimately bringing down the entire economy. In fact, a growing body of independent research confirms that it wasn't the affordable housing mandate that led to the proliferation of risky mortgages. And the most recent evidence comes from the St. Louis Federal Reserve Bank.|
The time limit for entering new comments on this Quicklink has expired.
This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.