Thursday, October 2, 2008

They Knew

My, oh, my! There was a NY Times article written in 1999 in which the current bailout of the financial industry was predicted. They knew that this could happen nine years ago! Yet, they still did it.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into
trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

Even more interesting was the fact that all of this was caused, at least in part, by the Clinton Administration:

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

Still think the Democrat's socialist, entitlement plan good for our economy and families?

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Mommy to One said...

Hmmm...interesting. Maybe Bush ISN'T to blame for all that is wrong with the world. LOL!