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What say you?
"Barney Frank was no more naive to problems at Fannie Mae and Freddie Mac, than you are of your own first name."
-Are you trying to infer that Fannie & Freddie is the cause of the housing bubble burst? Think again, CL.
Remember Phil Gramm, Chairman of the Senate Banking Committee in 1999? Yeah that guy from Texas now working for a Swiss Bank.
Was it bad policy or bad intent when he authored the Financial Services Modernization Act of 1999 which allowed banks to make loans (-mostly re-finances, NOT 1st time loans to poor folk under Fannie&Freddie), which could be turned in to SECURITIES and sold as such to make a lot of money? Remember, the Glass Stegall Act of 1933 forbid this mingling of banking and investment, but Phil Gramm had a better idea. Of all the foreclosed loans made to people under Fannie and Freddie, what percentage of the total foreclosures did they make up? It was the re-finances that made banks money, first by originating the loan for a fee, and then selling it as a security. It was re-finances NOT Fanny Mae and Freddy Mac that crashed our economy.
No. I was calling Barney Frank a bald-faced liar.
I have not covered the cause of the crisis in one single post, but it's explained throughout the following categories:
http://the-classic-liberal.com/category/federalreserve/
http://the-classic-liberal.com/category/economymarkets/
And this post is important too:
http://the-classic-liberal.com/can-you-afford-not-to-hold-them-accountable/
[...] Reaganite Republican, and Michael from Jumping in Pools. It seems that the topic resonated, as our friend, the Classic Liberal, has also commented. Here is his post, republished with permission. It’s common for opponents of Big Government [...]