Some Saw it Coming
An article published in the New York Times on September 30 1999 described the new business Fannie Mae would be venturing into. They explained they would ease the credit requirements in order to increase homeownership rates amount minorities and low-income consumers. This came after mortgage companies pressed Fannie mae to help them make loans to the “so called sub-prime borrowers.” If only they knew what we know now…
Well, some people did see it coming. Peter Wallison a resident fellow at the Americna Enterpirse Institute said, “If they fail, the government will have to step up and bail them out…”