Gotta love it when the federal government blames everybody but itself for the misery casseroles it deposits on the nation’s doorstep.
First we had the housing collapse, courtesy in large part of government-run mortgage behemoths Fannie Mae and Freddie Mac. Fannie’s and Freddie’s post-collapse bailouts may cost taxpayers close to $200 billion — far more than any private company got.
Yet what was Rep. Barney Frank, D-Mass., saying about Fannie and Freddie in 2003? “The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. …”
Do tell.
Sen. Charles Schumer, D-N.Y., said two years later: “I think Fannie and Freddie need some changes, but I don’t think they need dramatic restructuring in terms of their mission, in terms of their role in the secondary mortgage market, et cetera. Change some of the accounting and regulatory issues, yes, but don’t undo Fannie and Freddie.”