Wednesday, December 28, 2011

What Fannie and Freddie Knew, The SEC shows how the toxic twins turbocharged the housing bubble. - WSJ

Democrats have spent years arguing that private lenders created the housing boom and bust, and that Fannie Mae and Freddie Mac merely came along for the ride. This was always a politically convenient fiction, and now thanks to the unlikely source of the Securities and Exchange Commission we have a trail of evidence showing how the failed mortgage giants turbocharged the crisis. - The Wall Street Journal, 12/23/2011

Link to entire essay appears below:

Note: for additional perspective, one might consider reading Stanford University economist John B. Taylor’s book Getting Off Track, how government actions and interventions caused, prolonged, and worsened the financial crisis.

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