True or False:
1. Excessive lending to subprime borrowers did not appreciably affect other homeowners.
2. The rapid increase in housing prices during the housing bubble made both borrowers and lenders expect that the risks of subprime lending was minimal.
3. The traditional safety of home loans in the United States helped make investors eager to buy mortgage-backed securities.
4. There was no one in the world who knew exactly where all the mortgage-backed securities were being held when they began to experience trouble.
5. After the Fed began pushing short-term interest rates up in 2005, the higher interest rates and falling housing prices pushed many homeowners into default and foreclosure.
6. When house prices began falling and many went into default and foreclosure, the housing industry continued to produce new housing at a rapid rate.
7. The fact that Fannie Mae and Freddy Mac were buying large amounts of risky mortgages meant that other buyers perceived the risks of such investments as lower than they really were.
8. The federal government had to take over both Fannie Mae and Freddy Mac as a result of the financial crisis.