News for hackers. Stuff that matters.

A comment on Failure must always be an option. Parent comment

Re:Failure must always be an option by nazgulnarsil on Monday September 22, 2008 @06:37AM (#310999)
not created by the market. banks took these high risk loans knowing they could sell them to fannie-mae and freddie-mac, who in turn knew they would not be allowed to fail.
[ Parent | on HN ]
Re:Failure must always be an option by mattmaroon on Wednesday September 24, 2008 @04:55AM (#313334)
The loans themselves are only a tiny fraction of the problem. It's more the credit default swaps and other forms of gambling tied to the loans.
[ Parent | on HN ]
Re:Failure must always be an option by DanielBMarkham on Monday September 22, 2008 @07:06AM (#311007)
Actually, weren't lending institutions required to loan so much to high-risk borrowers as a way to make sure more people had homes? Seems like I heard this was a requirement if the institution wanted to open new offices.
[ Parent | on HN ]