Fannie Mae and Freddie Mac, Evildoers or Whipping Boys. (financial crisis, government, state)

[ovcatto]

Fannie Mae and Freddie Mac are either the cause of the financial crisis or simply one piece in a bigger cog either way I find the subject fascinating but I also find the story to be convoluted and contradictory. For those who wish to discuss the issue without recrimination and partisanship, I invite you to contribute to this thread.

To help the discussion along, I am linking to a number of stories that attempt to explain the both the history and timeline of the meltdown and some insights of what has gone on.

Going Subprime: Fannie Mae and Freddie Mac consider the subprime loan market, by Allen Fishbein

Financial Update - Volume 14, Number 1 - Fannie Mae and Freddie Mac

Subprime mortgage crisis - Wikipedia, the free encyclopedia

http://www.nytimes.com/2008/07/14/op...rugman.html?hp

Time to Reform Fannie Mae and Freddie Mac

Fannie's Perilous Pursuit of Subprime Loans - washingtonpost.com

[ThAdam]

i haven't read all the links, sorry,

from what i have gathered reading and some research since this all broke;

Fannie and Freddie are not the root of the problem, simply a cog in a much larger breakdown in both the financial community and myriad governmental levels at properly watching and containing their behavior

[ovcatto]

That's quite alright, since I know that there will be folks entering the discussion with more background on the issue (I at least hope).

As for your stated opinion, that is my starting point as well; Fannie Mae and Freddie Mac weren't the cause but were heavy contributors. But I am keeping an open mind as the debate develops.

[BigJon3475]

This is what happens when a Government Sponsors an Entity that entails product on the free market. *The government* What Monopoly? We sponsor them we got it nothing can happen and people who couldn't afford houses can now. Ohh what a tangled web we weave.

[karfar]

My sister & brother-in-law were talking about this at Thanksgiving. Since they are much more knowledgable about it than I am, I can't argue the point but I will say that they firmly believe that Fannie & Freddie were NOT the cause of this debacle.