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Subject:  Re: Fannie Mae: Tipping point of risk Date:  10/5/2008  12:45 PM
Author:  Milligram46 Number:  257746 of 534960

“Fannie Mae faced the danger that the market would pass us by,” he said. “We were afraid that lenders would be selling products we weren’t buying and Congress would feel like we weren’t fulfilling our mission. The market was changing, and it’s our job to buy loans, so we had to change as well.”...

And the buyers using those risky devices, "faced the danger the market would pass [them] by," so they bought in, fearing that prices would continue to go up 8%, 10%, 15%, 20% a year and they would NEVER be able to afford a house in their lifetime regardless of wage growth they could experience.
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