Don't Let 'Em Forget This ...

Posted: Sep 25, 2008 12:33 PM
We should not allow anyone to forget this NYT column from September 30, 1999.  Here's an excerpt: 

"In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

... Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits."

So it wasn't that we needed more government regulation to prevent this crisis.  Instead, this crisis was caused by government forcing these entities to make subprime loans to people who couldn't afford them... 

So government's not the solution -- it's the problem!