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Subject:EconomicsPrice: Bought3

5. Among the culprits for the housing bubble were Fannie Mae and Freddie Mac.

 

6. The existence of the mortgage interest deduction on taxes tends to reduce the sale of homes.

 

7. As Woods points out, adjustable rate mortgages (ARMs) had nothing to do with the housing bubble bursting.

 

8. Woods argues that while lenders were often bashed for causing the bursting of the housing bubble they were, in fact, doing exactly what the government wanted them to do.

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