What factors led to the mortgage default crisis? How did the mortgage defaults a

Question

What factors led to the mortgage default crisis?  How did the mortgage defaults affect banks involved in mortgage lending and mortgage investing?  Securitization TARP?  What do these mean?  How did Mortgage-backed securites speedlosses during he mortgage default crisis?  How does Tarp illustrate the problem of moral hazard?  What did the Federal Reserve do during hte financial crisis of 2008 and 2009?  How did the recent financial crisis affect the financial service industry?  What are some of hte major provisions of hte wall street Reform and Consumer Protection Act?

Explanation / Answer

I usually like Landlord's answers, but she is wrong in this case( sorry, Landlord). Although it's true that action taken at the end of the Clinton Admin. regarding Fannie and Freddie may have been the start of it, it was the Bush Jr. Admin's lack of regulation of these industries, plus the fact that they were allowed to keep shareholders in the dark, that over the years allowed the problem to fester unseen like black mold behind a wall that destroys the entire home. Hence the crash at the end of the Bush Admin. The one thing Bushy earned during his administration was the "BOOS" that the American people shouted at him as he was helicoptered away from Washington DC at the end of his presidency. "Nah nah nah nah, hey hey, goodbye" Bush baby. You not only killed our soldiers but you did unprecedented damage to the US economy.

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