05 Oct 2008

It Wasn’t Business; It Was Politics

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The New York Times traces the lamentable tale of Fannie Mae and Freddie Mac’s descent into insolvency.

How’d it happen? Greed, of course. Greed for political goals, greed for self importance, and greed for results achieved without responsibility.

Everybody understood that we were now buying loans that we would have previously rejected, and that the models were telling us that we were charging way too little,” said a former senior Fannie executive. “But our mandate was to stay relevant and to serve low-income borrowers. So that’s what we did.”

One Feedback on "It Wasn’t Business; It Was Politics"

Dai Alanye

It’s really sad how little use not only McCain but the Repubs in general have made of Dem culpability in the sub-prime scandal. The Dems, always ready to shift blame and lie like rugs, have sold this to the public as a Republican responsibility.

Perhaps McCain wanted to wait until after the bailout to go on the attack, but I suspect it was the mantra of bipartisanship that has held him back. Disgustingly, he and Sarah must go with the default mode of blaming Wall Street.

It’s bad politics and misplaced ethics. I hope at least one of them is ashamed.


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