Sometimes We Do have a Better Press Corps (Another McClatchy News Edition)
It wasn't Fannie and Freddie, and it wasn't the CRA:
Private sector loans, not Fannie or Freddie, triggered crisis, by David Goldstein and Kevin G. Hall, McClatchy Newspapers: As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail.
Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.
Federal housing data reveal that the charges aren't true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis. [...continue reading...]
Posted by Mark Thoma on Saturday, October 11, 2008 at 04:23 PM in Economics, Housing, Politics |
You can follow this conversation by subscribing to the comment feed for this post.