Sunday, October 12, 2008

Right Wing And McCain Attacks On Freddie Frannie Not Backed Up By Facts

Once again right wing radio and commentators and the McCain campaign claims that the sub prime mortgage crisis was caused by lending to poor and minority clients by Freddie and Fannie are not backed up by the facts. God what a surprise. The real problem is traced to private sector unregulated lending practices.

This report, once again, makes one wonder if McClatchy is the only remaining large news service in this country that cares about facts?
"Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.Federal housing data reveal that the charges aren't true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis."

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