Quote:
Originally Posted by Ice
Nobody undertands how this happened. My mother in law was very high up in Freddie Mac, we still have dinner with people who work there now. BTW, they were shown a video from Paulson last week telling them their jobs are safe for 2008, but he can't guarantee anything for 2009 and suggested they look for work. These are people who have spent their entire careers of 20 years or more in the mortgage industry and his best advice is to look for employment.
The thing is, even people who work there don't understand how they acquired these subprime loans. Because the loans making headlines for high default rates/foreclosures are not conforming loans. Nobody can explain how Fannie Mae or Freddic Mac ended up with them.
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The best quick summary I have seen:
http://bigpicture.typepad.com/commen...bprime-re.html