Yesterday, I posted here regarding the comments that readers post after reading an article. Those comments are often as good, if not better, than the article itself. As follow-up, in this part two post I’ve copied comments received in response to an Op-Ed piece written by Bethany McLean in The New York Times on July 20, 2015: “Fannie and Freddie are Back, Bigger and Badder Than Ever.” http://nyti.ms/1fXjRfP
I’ll reserve personal comment on the article as I believe many of the following readers some it up best:
is a trusted commenter Cleveland, OH July 20, 2015
This starts off with a complete fabrication, and doesn’t get much better.
When the author says that “everyone agreed” that we should get rid of Fannie and Freddie, what she really means is that conservatives decided (without any real evidence) that the government was to blame for the financial crisis. This was because their ideology demanded that big business hadn’t screwed up and wrecked the economy, so they seized on any government involvement they could.
The first big claim was that the Community Reinvestment Act caused it. This claim was subtly racist, actually, because it was arguing that the crisis was the result of the government forcing banks to lend to black people. Researchers looked into it, and learned that black families and CRA-qualified loans were getting repaid at least as diligently as everybody else.
The second big claim was that Fannie and Freddie caused it by getting into subprime loans. But that was nonsense too, because everybody else had gotten heavily involved before Fannie and Freddie, and Ms McLean’s former employer Goldman Sachs was far more involved than Fannie and Freddie had ever been.
The reality is that the big banks and mortgage brokers did this almost entirely on their own, and the regulators who should have stopped it were either bribed or asleep on the job.
Orlando July 20, 2015
Fannie and Freddie were the only entities keeping the housing market afloat after the banking collapse. It didn’t get involved in the criminally reckless business of sub-prime loans, liar’s loans and all the other irresponsible banking behavior that brought in a lot of money to corrupt and unethical.bankers It should be applauded as a bulwark of safety in a time of peril as much as unemployment insurance and social security to keep our economy going in the toughest times. These New Deal safeguards were far more useful than the ridiculous bank bailout and prevented another Great Depression IMO.
Verona, N.J. July 20, 2015
The 2008 financial crisis was created by Wall St. and their mortgage-broker front men “innovation” of new ‘financial products’ such as zero-documentation-zero-verification-zero-interest-teaser-rate loans….also known as economic plutonium…and the crisis was compounded by the slicing and dicing of that economic plutonium into ‘AAA’-rated security sales to pensions, 401K plans, municipal and sovereign governments and general investors.
The 2008 financial crisis was entirely the making of unregulated Wall St. greed and psychopathy.
Fannie and Freddie were simply passengers on the evil bus driven by the greediest and most dangerous people in the business world – Wall St. and bankster psychopaths.
Bring back Glass Steagall and regulate bankster greed.
Freddie and Fannie are doing just fine.
is a trusted commenter WA July 20, 2015
This strange article starts with a right wing falsehood, dispelled in an extensive examination by the Fed.
After complaining that Fannie and Freddie only benefited shareholders and executives while being guaranteed by the government, it then criticizes the sweeping of profits into the Treasury.
Finally, it acknowledges the important role of the two companies, especially in providing equitable access to home buyers with lower incomes.
But most importantly, it fails to acknowledge the dramatically changed standards for new loans in the secondary market imposed by the two organizations.
Very confused article.
Rhode Island July 20, 2015
Former Goldman Sachs investment banker and writer of this Op-Ed piece BETHANY McLEAN would like us to believe it was Freddie’s and Fannie’s fault we almost fell into another Great Depression and not the Biblical greed of places like Goldman Sachs, who were bailed out to the tune of $125 billion in tax payer funded money.
I wonder why Mrs. McLean isn’t wringing her hands about Goldman’s continued existence in the wake of it’s massive fraud.
Rhode Island July 20, 2015
The 2016 Presidential Election is in full swing and, as is par for the course on the right, their first order of business is to muddy the historical economic waters to once again trick low information conservative voters to vote against their own economic self interest…again.
And what better way to do this than point their fingers at Fannie and Freddie, that serve Joe Six Pack and away from true cause of the collapse Goldman Sachs, Bank of America, Wachovia, Citigroup, J.P. Morgan and the rest of the money changers on Wall-Street that serve only themselves.
When will the conservative voter wake up and realize that the master manipulators on Wall-Street are laughing their doughy arses off at them?
I mean even Pavlov’s dog caught on eventually…