Not to pile on, as there is clearly more than enough material on the topic, but we at MarylandCommercialTitle.com believe it is very important for all of us to fully understand the origins of our financial crisis, IF we are to truly solve the problem (and safeguard this from ever happening again).

Here is an attempt to summarize the beginings of this horrible mess ……

According to an excellent opinion piece posted in BlownMortgage.com entitled The Genesis of Our Current Mortgage Crisis this crisis began when the “dream” of American home ownership somehow morphed into the “right” for all Americans to own a home. 

As a concept in America, home ownership morphed from a “dream’ to yet another government entitlement.

A careful chronology has been assembled by Professor Charles Calomiris (of Columbia Business School) and Peter Wallison (American Enterprise Institute) in a carefully crafted article in  the WallStreetJournal.com entitled, Blame Fannie Mae and Congress For the Credit Mess. Here is an excerpt:

Many monumental errors and misjudgments contributed to the acute financial turmoil in which we now find ourselves. Nevertheless, the vast accumulation of toxic mortgage debt that poisoned the global financial system was driven by the aggressive buying of subprime and Alt-A mortgages, and mortgage-backed securities, by Fannie Mae and Freddie Mac. The poor choices of these two government-sponsored enterprises (GSEs) — and their sponsors in Washington — are largely to blame for our current mess.

How did we get here? Your thoughts …….

Tags: Financial Recovery

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