March 24, 2009

On Freddie Mac and Fannie Mae

I hear a lot of people complaining that about how Bush's deregulation of industry and Fannie Mae and Freddie Mac. It comes from living in California, I suppose. There is a lot of Bush-bashing that goes on. Not that I completely disagree with it, but it gets tiring fast.

I would like to point out, however, that in 2003, the Bush administration had called for "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago". This was partly supported by executives in the two federally-sponsored companies.

The Congress, under a Democratic majority at the time, rejected the plan.

I quote: "'These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,' said Rep. Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. 'The more people exaggerate these problems... the less we will see in terms of affordable housing.'"

See: http://www.nytimes.com/2003/09/11/business/new-agency-proposed-to-oversee-freddie-mac-and-fannie-mae.html?sec=&spon=&pagewanted=print

Just a thought supported by a fact, plus a warning not to believe just anything.

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