Comments on: Fiscal Responsibility Is the Best Policy http://www.redstate.com/leslieshedd/2009/07/10/fiscal-responsibility-is-the-best-policy/ Just another RedState: Conservative News and Community weblog Wed, 02 Dec 2009 20:33:27 +0000 http://wordpress.org/?v=2.6.1 By: izoneguy http://www.redstate.com/leslieshedd/2009/07/10/fiscal-responsibility-is-the-best-policy/#comment-150 izoneguy Sat, 11 Jul 2009 02:38:58 +0000 http://www.redstate.com/leslieshedd/?p=46#comment-150 Save this .pdf and use it when the Fannie Mae & Freddie Mac supporters say they had nothing to do with the crash: The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008 STAFF REPORT U.S. HOUSE OF REPRESENTATIVES 111TH CONGRESS COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM JULY 7, 2009 http://blog.heritage.org/wp-content/uploads/2009/07/7-7-09-housing-crisis-report.pdf The housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans. This intervention began with two government-backed corporations, Fannie Mae and Freddie Mac, which privatized their profits but socialized their risks, creating powerful incentives for them to act recklessly and exposing taxpayers to tremendous losses. Government intervention also created “affordable” but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage. Finally, government intervention created a nexus of vested interests – politicians, lenders and lobbyists – who profited from the “affordable” housing market and acted to kill reforms. In the short run, this government intervention was successful in its stated goal – raising the national homeownership rate. However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy. While government intervention was not the sole cause of the financial crisis, its role was significant and has received too little attention. Committee Holds Hearing on Collapse of Fannie Mae and Freddie Mac http://oversight.house.gov/story.asp?ID=2252 http://oversight.house.gov/documents/20090209155117.pdf Barack Obama's Fannie Mae/Freddie Mac Connection http://www.foxnews.com/story/0,2933,423701,00.html Save this .pdf and use it when the Fannie Mae & Freddie Mac supporters say they had nothing to do with the crash:

The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008

STAFF REPORT
U.S. HOUSE OF REPRESENTATIVES
111TH CONGRESS
COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM
JULY 7, 2009

http://blog.heritage.org/wp-content/uploads/2009/07/7-7-09-housing-crisis-report.pdf

The housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans. This intervention began with two
government-backed corporations, Fannie Mae and Freddie Mac, which privatized their profits but socialized their risks, creating powerful incentives for them to act recklessly and exposing taxpayers to tremendous losses. Government intervention also created “affordable” but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage. Finally, government intervention
created a nexus of vested interests – politicians, lenders and lobbyists – who profited from the “affordable” housing market and acted to kill reforms. In the short run, this government intervention was successful in its stated goal – raising the national
homeownership rate. However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy. While government intervention was not the sole cause of the financial crisis, its role was significant and has
received too little attention.

Committee Holds Hearing on Collapse of Fannie Mae and Freddie Mac

http://oversight.house.gov/story.asp?ID=2252

http://oversight.house.gov/documents/20090209155117.pdf

Barack Obama’s Fannie Mae/Freddie Mac Connection

http://www.foxnews.com/story/0,2933,423701,00.html

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