Sunday, January 24, 2010
Tuesday, January 12, 2010
And more evidence the government caused the current financial problems.
Freddie Mac and Fannie Mae deliberately sold very risky loans as high quality low risk paper. FannieMae/FreddieMac Fraud
Everyone knows that Fannie Mae and Freddie Mac, the government-sponsored entities that helped create a market for mortgage-backed securities, played a key role in last year's financial crisis. But the truth is, apparently, worse than that. It seems that Fannie Mae and Freddie Mac--the U.S. government, in effect--"routinely misrepresented the mortgages they were acquiring, reporting them as prime when they had characteristics that made them clearly subprime or Alt-A...." The much-reviled Wall Street bankers relied on those representations by agents of the federal government when they bought and sold securities backed by those misrepresented mortgages.
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