Federal Reserve Bank Of Richmond Lacker On The Financial Crisis

See Reflections on Economics, Policy and the Financial Crisis by Jeffrey M. Lacker. Excerpts:

"The U.S. housing GSEs and their low-income credit mandates exerted a larger influence on the subprime mortgage market than was known ex ante."

"Perhaps most importantly, the magnitude of the overinvestment in housing collectively generated by these sources of moral hazard was underestimated and emerged only gradually as the fall in residential investment unfolded."