Federal Government Was Culprit in Housing and Economic Crisis, Says Congressional Report
Fannie Mae and Freddie Mac were the chief culprits in the housing crisis because they encouraged people who could not afford payments to borrow money, according to a
congressional report released Tuesday
The claims in the report have long been advanced by conservatives, who argue that the Community Reinvestment Act and other federal programs fed the housing bubble that burst in 2007 and led to the economic downfall in 2008.
“In the short run, this government intervention was successful in its stated goal – raising the national homeownership rate,”
“However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy,”
the well-intentioned goal that everyone have a home even if they can’t afford it,”
clipped from: www.cnsnews.com 