Jackson50 on 23 September 2008
The problems may have began under Clinton because of the government's shift in attitude that everyone needed to own a home, but the real problem did not begin under him. When the fed funds and discount rate rose in late 99-early 2001, this would have priced the high-risk (prospective) home owner out of the market. But when the fed funds and discount rate dropped to below 1 percent in late 2001, this encouraged the high-risk prospective home owner to purchase a home. Because the rates did not rise above 3 perent until late 2004/early 2005, the damage had been done...it was only a matter of time.
