Barney Frank and Senator Chris Dodd along with Bill Clinton are the reason Freddie and Fannie opened up lending to people who couldn't pay.
Lending to first time home owners and minorities is a great thing.
These guys had good intentions. I don't doubt that.
What was so infuriating and stupid was that this could have all been avoided.
Knowledgable people in the Mortgage industry knew that the program incentives for the execs at Freddie and Fannie and the ones that rolled out organizationally would generate horrible behavior, no checks and balances and would create a financial crater.
My prediction is that if we have Barney and Dodd predicting that things will be one way in 09, they will be wrong. No common business sense.
Ok, I feel better now.
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Originally Posted by AzX5
3. "I think this is a case where Freddie Mac (NYSE:FRE - News) and Fannie Mae (NYSE:FNM - News) are fundamentally sound. They're not in danger of going under I think they are in good shape going forward." -- Barney Frank (D-Mass.), House Financial Services Committee chairman, July 14, 2008
Two months later, the government forced the mortgage giants into conservatorships and pledged to invest up to $100 billion in each.
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