Who says this financial crisis wasn't predicted?

[warlord_mit]

According to this article from the NYT (note the "publshed date" of 1999!) they predicted the subprime loan collapse.  From the article:

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized

Comments

[devichan]

Nope, you can't blame Bush. Know who you *can* blame? McCain and Gramm, who were instrumental in getting this through a Republican-controlled Congress.

[abce]

Gramm-Leach-Bliley is the reason we have more banking houses that aren't in crisis; some of that dergulation helped them diversify.

Nope, it's the unfettered diving into subprime loans, giving credit to the uncreditworthy (who, we now see, are uncreditworthy for a reason), and the derivatives market backed by those.