Thursday, December 22, 2011
The Financial Crisis on Trial - WSJ.com
Government at work destroying the economy.
That sounds harsh, doesn't it? Unfortunately it's true.
I doubt it was intentional; however, that's not much, considering the damage done because they always want to meddle where the free market would do better...
That sounds harsh, doesn't it? Unfortunately it's true.
I doubt it was intentional; however, that's not much, considering the damage done because they always want to meddle where the free market would do better...
Peter J. Wallison writes about it in the Wall Street Journal:
"The Securities and Exchange Commission's lawsuits against six top executives of Fannie Mae and Freddie Mac, announced last week, are a seminal event.
For the first time in a government report, the complaint has made it clear that the two government-sponsored enterprises (GSEs) played a major role in creating the demand for low-quality mortgages before the 2008 financial crisis. More importantly, the SEC is saying that Fannie and Freddie—the largest buyers and securitizers of subprime and other low-quality mortgages—hid the size of their purchases from the market. Through these alleged acts of securities fraud, they did not just mislead investors; they deprived analysts, risk managers, rating agencies and even financial regulators of vital data about market risks that could have prevented the crisis."
