Tuesday, November 9, 2010
Don't Stop Now, It worked so well
The current economic situation is the direct result of Freddie Mac and Fannie Mae pushing subprime mortgages as a social policy. People borrowed more than they could repay and created the bubble. When the teaser rates these agencies offered went up, the bubble popped and things went to hell. As long as people insist on blaming Bush, Republicans and Banks, the situation will not be resolved. Obama’s vaunted Financial Reform doesn’t even mention Freddie Mac and Fannie Mae - no solutions there.