The real subprime mess blame goes to the government, according Peter Schift of Money Morning.
Yes, I agree with him.
“Were it not for the excessively low interest rates provided by the U.S. Federal Reserve, the lax lending standards and moral hazards supplied by Congress courtesy of Freedie Mac, Fannie Mae and the Federal Housing Administration, built into the tax code, none of these predatory loans would have been possible.”
That sums it up- except for the low interest rates.
I still don’t see why low interest rates could be such a bad thing for responsible real estate investors.
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