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Thursday, July 14, 2011

The Fannie and Freddie myth

It has become axiomatic on the right that Fannie and Freddie caused the economic crisis. If you need a hammer to smash that lie, here it is.
There is a related lie about minority borrowing being the cause. Makes my blood boil. All those minorities in Phoenix and Las Vegas. Shame on them.

How f*cking absurd can these liars get. Its just such obvious rubbish.

The complete absence of shame.

Joe, did you read the article by David Brooks entitled "Who Is James Johnson?"

Did you read the book "Reckless Endangerment" by Gretchen Morgenson?

Joe, relating to the David Brooks article, someone in the comment section left a link to another NY Times article dated 9/30/99 entitled "Fannie Mae Eases Credit To Aid Mortgage Lending". The NY Times chose to delete that comment, but luckily, I had enough info to be able to Google it and read it.

Imagine, the NY Times not wanting us to read this!

Here is a quote from that article:
"In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's."

Don't forget, we continue to bail out Fannie & Freddie. They have been given blank checks.

I wonder if Cynic actually knows what a cynic is, or what Fannie and Freddie do that the private industry isn't willing to do, but needs FnF for?

Blank check eh, well as long as Americans default on their mortgage loans, we have are bound to keep writing checks. What ever happened to Magnastar?
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