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Article: Not All Fannie Mae & Freddie Mac's Fault - Update - Analyst Blog
- Article from:
- Zacks Investment Research - Analyst Blog
- Article date:
- October 16, 2008
- Author:
CopyrightCopyright 2008 Zacks Investment Research. (Hide copyright information)
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Not All Fannie Mae & Freddie Mac's Fault - Update - Analyst Blog
There is a meme developing that the current financial crisis is all, or at least mostly, attributable to
Fannie Mae
(
FNM
) and
Freddie Mac
(
FRE
), with a strong supporting role for the Community Reinvestment Act (CRA). This is simply not true, even if it is repeated in respectable publications, or even in presidential debates. This is an important point to make, since if a doctor can not make an accurate diagnosis, it is unlikely that he will write the correct prescription. Â
Let's review a little bit of history: Fannie Mae dates from 1938, Freddie Mac from 1968, and the CRA was passed in 1977. The worst of the ...