Congressional Report: Government Was Culprit in Housing, Economic Crisis

Meredith Jessup | July 09, 2009 4:40 PM

According to a report released from the House Committee on Oversight and Government Reform on Tuesday, Fannie Mae and Freddie Mac were the leading culprits in the housing crisis because they encouraged people to borrow money, despite the fact they might not be able to pay it back. Duh.

It took 9 months and a 26-page government report to realize this?

Conservatives have long been warning that federal programs like the Community Reinvestment Act would build an inflated housing market resting on shaky foundations.

In fact, the report explains how Fannie and Feddie--government programs exempt from the oversights governing other publicly-traded firms--"privatized their profits but socialized their risks."

CNSNews reports.