So we're in this current mess because of government encouraged loans to risky borrowers?
This brings to mind images of inner city poor folks applying for mortgages at some sort of community organized housing expo. Guaranteed housing loans suddenly started falling from the hands of the government backed lenders? Is that the case?
I minored in Economics at a cow college, so I usually get in over my head on this stuff, but I can't believe that low income delinquent borrowers really contributed all that much to this re-adjustment we are having.
Why did anyone think it was a good idea to offer these programs? I have to believe it actually appealed to some agencies or elected reps who believed in the idea of putting the responsibility for housing oneself and family into the hands of the individual. Removing people from subsidized housing (which I assume requires a vast outlaying of resources to administer) by streamlining the process?
If that's the case then are these articles saying that these loans have failed on a large scale? How many of these borrowers are still making their payments?
Was anyone not requiring government housing subsidies interested in the properties these programs were designed to get people into?