“How Politicians and Regulators Caused the Sub-Prime Financial Crisis of 2007 and the Subsequent Crash of the Global Financial System in 2008, and Likely Will Again”

I gotta get back to talking about the Phoenix real estate market instead of all this macroeconomic stuff but with the impending overhaul of Fannie and Freddie, I really want to get a better feel for how any potential changes to Fannie and Freddie might impact the Phoenix area residential real estate market.

Here is a great explanation of the origins of the financial crisis.

I agree with a lot of it and it hangs together well, although I think he may put too much blame on Fannie and Freddie. (I know, I can’t believe I said that myself!)

It’s surprising that he puts so much blame on Fannie and Freddie because the author was a Senior VP, CFO and Chief Economist at Freddie Mac! But I guess there’s no one better to know the political and regulatory machinations that went on there. (Full 126 page report.)

August 10, 2010 by Realtor John Wake

About The Author

John Wake

Born in Phoenix, trained as an economist and now a licensed Realtor, John uses hard data from the real estate market to help his clients -- buyers and sellers of residential real estate -- uncover their best choices for finding the right home or finding a buyer for their current home.

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