Jon Rivoli
I am the Devil.
- Joined
- Aug 3, 2003
- Posts
- 2,338
Fannie Mae and Freddie Mac where quasi government "businesses" the leadership being chosen more for political reasons than mortgage experience. During the housing bubble politcal pressure ecouraged instituions to relax lending standards and loan money to people who would not normally qualify. This was done to encourage home ownership, a worthy goal. Fannie and Freddie are involved in about half the mortgages in this country making them ideal instruments to further this goal. We all know how this turned out in the end. As is normally the case when government interferes with markets, the law of unintended consequenses is a biotch.
As a side note, two former directors of these companies who collected a combined total of around $175 million is compensation during their tenures are now economic advisors for a certain presidential candidate whom this past week claimed that our entire economic system has failed. Thats irony.
As a side note, two former directors of these companies who collected a combined total of around $175 million is compensation during their tenures are now economic advisors for a certain presidential candidate whom this past week claimed that our entire economic system has failed. Thats irony.