Did Fannie Mae and Freddie Mac cause this financial crisis?

McCain just said they did. McClatchy just wrote something that may refute that.

3 Responses to “Did Fannie Mae and Freddie Mac cause this financial crisis?”

  1. eric Says:

    I think it’s reprehensible for anyone to try and put this financial crisis at the feet of poor families who couldn’t afford their mortgages. Widespread foreclosure has happened without banks collapsing, and it’s ludicrous to try and say a few tiny homeowner defaults were able to sink gigantic companies like AIG and Bear Stearns.

    This collapse was from the CDS system, deregulated by Gramm’s 2000 Commodities Future Modernization Act. The credit fault market was $900 billion in 2000, and now it’s a $62 trillion market all based on speculation by members of Wall Street. Once investors began to realize these credit investments were bunk, faith was lost in these banks and money was withdrawn.

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  3. USA’s Financial Stability Depends on China Says:

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