The Soviets would envy such perfect capture of private property.
Today is a good day to die.
I didn't say for whom.
The percentage of home ownership in the U.S. hasn't been higher relative to other developed economies, such as Canada, so these relics of the Great Depression should have been dismantled long time ago. Instead, the "progressives" used them as a bulwark in their "politically correct" policies of "ownership society" and even doubled down with Carter's CRA and Clinton's HUD and DOJ enforcement policies, and "community organizers" like Obama filing lawsuits against the banks to force "subprime" lending.
The result of all this massive government intervention in the market economy was not "unexpected," with nine out of ten mortgage loans now effectively under government control.
Just think how many votes that would buy!
Fannie and Freddie were the enabling conduit that allowed companies like Countrywide to originate their crap loans and pass them along to be securitized and ultimately poison the MBS market, and subsequently cause the housing crash. That we had a quasi-govt entity creating securities to sell with implied govt backing was a ludicrous thing to start with. Now we’re paying for it.
The Soviets would envy such perfect capture of private property.
Why has Fannie and Freddie not been investigated for their role in destroying the US economy and why has no one gone to jail yet?
What is so outrageous is that even after the crash the gubmint has continued using FHA/Fannie as a affirmative action giveaway and to prop up the housing market. They are still pushing 3% down loans after the mess they made! No way the community organizer gives up control of this. Too many blacks benefit.