"Fannie Mae and Freddie Mac are not in a crisis . . . the more people in my judgment exaggerate a threat of safety and soundless, the more people conjure up the possibility of serious financial losses to the treasury -- which I do not see -- I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios -- and even if there were a problem the federal government doesn't bail them out -- but the more pressure there is there than the less I think we see in terms of affordable housing".
Then ranking member, now Chairman of the House Financial Services Committee, Barney Frank, in September 2003.
Friday, September 26, 2008
"The Federal Government Doesn't Bail Them Out"
Posted by Harriet at 10:23 AM
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2 comments:
Does this guy have a clue? The housing bubble in part enabled by freddie fannie was the biggest assault on affordable housing I've ever seen. And the bubble bursting is doing more to make housing affordable than any government program ever did. Subsidizing interest rates doesn't really help housing affordability since it has the affect of pushing up prices.
Um, the date of his statement was 5 years ago.
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