Fannie Mae-No Politics (FNMA)

[HappyAlways]

Great post. Need to share that.

Here’s what really happened. During the housing bubble of the mid-2000s, over-leveraged shadow banks packaged risky subprime mortgage loans into securities and passed them along to consumers that were often unaware or misinformed of the underlying risks. It was the poor performance of these private-label securities — not those issued by Fannie and Freddie — that led to the financial meltdown, according to the bipartisan Financial Crisis Inquiry Commission.

The new Fed study adds to a mountain of evidence debunking the politically-convenient conservative myth that government housing policies — not Wall Street — caused the foreclosure crisis. As Congress and the Obama administration consider how to best wind down Fannie Mae and Freddie Mac in the coming months, facts should drive the debate, not a surreptitious campaign to rewrite the history.