Who is responsible for the mortagage mess? The seeds were sown in 1999 at the end of the Clinton years. Barnie Frank was a cheer leader for the changes. He’s in political trouble today. Then the Republicans killed Glass-Steagall also in 1999.

This is the concluding paragraph of a premonitory story written in 1999:

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 corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

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