Let me emphasize that this is only about the subprime contribution of the overall crisis. Fannie Mae and Freddie Mac enabled much spillover into non-subprime mortgage sectors, government-set capital requirements and other regulations enabled the AAA ratings of mortgage-based securities that encouraged speculators, and there were plenty of imprudent and unscrupulous characters in the private sector too.
Suggestions for improvement welcome. Thanks to Christopher Vaughan for the flowchart’s visual design. [Return to the StephenHicks.org main page.]