Source: Yahoo Finance

Category: Really, really bad calls, Regulation, Retail, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “Fannie Mae Didn’t Cause the Housing Crisis, Radical Ideologues Did”

  1. Moss says:

    The problem of course is that the ideologues will NEVER admit it. Just another inconvenient truth.

  2. romerjt says:

    Gee, I thought I understood basics of the housing bubble and the meltdown after many books (incld BR’s) on the subject but after watching the clip and a few reviews on Amazon I guess I need to read at least one more. The Mortgage Wars – sounds like a really interesting inside view.

  3. BuildingCom says:

    The “crisis” never ended. In fact it’s larger and more dangerous than ever before.

  4. rwboomtown says:

    We have never had a free market. If we had a free market institutions would loan their own money (institutions being a collection of individuals pooling their funds and forming a lending agency). The Fed, government and zero respect for the rule of law was at the heart of the crisis. Skin in the game solves this problem over night. It is the easiest thing in the world to take monster risks with other peoples money when you are rewarded quarterly with no taste of the long term downside.

  5. Livermore Shimervore says:

    I could not disagree more.

    Ideologues? Pfffttt….

    RKF and Mandela wer idelogues who actually stood for things they believed. Barry Goldwater was an ideologue who wasn’t afraid to favor reproductive choice even if it collided with his party.

    What we have now are corporate whores that speak with ulterior motives that inevitably lead to some financial enrichment for them down the road. These whores are well-known to live in think tanks and in academia. Calling them ideologues gives them legitimacy and undeserving respect. They’re just trying to stuff their own pockets and that of their party — since they know being in power will bring them more financially-rewarded influence over the legislative process.

  6. Teejay says:

    Too bad Joshua Rosner and Gretchen Morgenson didn’t have Howard’s work as a reference for “Reckless Endangerment”. Madrick and Partnoy’s review: “Gretchen Morgenson and Joshua Rosner’s Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon boldly and passionately asserts that the risk-taking of Fannie Mae and Freddie Mac was a major element in causing the housing bubble. This claim is not substantiated by persuasive analysis or by any hard evidence in the book.”

    http://www.nybooks.com/articles/archives/2011/oct/27/did-fannie-cause-disaster/
    subscription required see also: http://www.dailykos.com/story/2012/03/28/1035960/-Reckless-Endangerment-Plagiarizes-Text-From-The-American-Enterprise-Institute

    • They have walked back some of their criticisms — Rosner in particular

      • Teejay says:

        The critics(?) have walked back some of their criticism? Can you point me to that material?
        Daily Kos was especially sharp with Morgenson and Rosner not only for plagiarizing AEI Wallison
        but using his padded $1.6 T toxic mortgages number.

      • Teejay says:

        Forgive me if you got my reply (I’m not sure I hit send).
        I’m not clear what your saying.
        They [critics] have walked back some of their criticisms [of] — Rosner in particular?

        Can you point me to this material? DailyKos took Morgenson & Rosner to task for plagiarizing
        Wallison’s padded $1.6T stat.

      • Rosner seems to be moving away from his prior comments in public statements.

        I’ve discussed this with him, heard him say it on TV and radio

  7. louis says:

    crime n. a violation of a law in which there is injury to the public or a member of the public

    Associated concepts: accessory to crime

  8. jaytrader says:

    If you link back to the original Yahoo link and read the comments..it pretty much reads out the Conservative Meme about the crisis. Blame the poor, the free market works, blah blah blah. To me the Agencies were not the cause of the crisis but was one of the secondary pieces of tinder sort of speak that made the fire even worse. I believe the private label mortgage industry had zero lending standards as that was a convey belt for Wall Street and the GSE’s were losing business to them so they started to relax their standards. Why? Surprise! They are Publically traded entities and they needed to show growth. The GSE’s business model worked but it was flawed in the sense that the guarantee they were placing on a pool of mortgages via the fee they would charge the banks wasn’t enough to cover the potential defaults.