Fannie Mae was purchasing existing loans that the banking industry had already advanced to not worthy clients. Fannie Mae did not initiated all these loans. And the banks kept advancing all these loans because the deposits from abroad were enormous and they wanted to transfer them from cash to earning assets. Therefore, they did once more what they did in 89 when a very large number of savings and Loan Association went belly up for exactly the same reasons. It appears bankers never learn. But the bankers did not have to loan to all these people.