Sound Bite For the Day: Bush Caused Mortgage Collapse, Not Freddie and Fannie


Newsweek’s Eleanor Clift:

Except, oops! It was already admitted a year ago that that Fannie Mae and Freddie Mac were responsible, admitted by one of the very architects of the disaster:

For years, Frank was a staunch supporter of Fannie Mae and Freddie Mac, the giant government housing agencies that played such an enormous role in the financial meltdown that thrust the economy into the Great Recession. But in a recent CNBC interview, Frank told me that he was ready to say goodbye to Fannie and Freddie.

“I hope by next year we’ll have abolished Fannie and Freddie,” he said. Remarkable. And he went on to say that “it was a great mistake to push lower-income people into housing they couldn’t afford and couldn’t really handle once they had it.” He then added, “I had been too sanguine about Fannie and Freddie.”


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