In the Financial Times April 18, 2016 interview with Jack Guttentag, the 96 year old Wharton professor emeritus and mortgage expert , FT wrote the following:
"He is forthright on the recent boom and bust in US real estate, which he says had little to do with shady practices at Wall Street banks.
Instead, he suggests, it was caused by a broad belief that house prices would keep rising - allied with strong demand created by government agencies, under orders to boost home ownership among lower-income segments.
Lenders and the investment banks that sold their loans through securitization had "every reason" to believe they were doing what the government wanted them to do, he wrote in a recent article.
"None of the congressmen responsible for imposing purchase quotas on the agencies has yet gone to jail," he complained."
When I read that I knew I had found a kindred spirit who was reputable and well regarded in his field.
I felt the same way when I read Peter Wallison's book Hidden In Plain Sight. It's an excellent book which, while critical of the role of Wall Street, powerfully set forth how the financial crisis leading to the Great Recession really began. The premise of his book is that "the crisis was caused by government housing policies".
Some day the truth will win out , but not this election cycle!