| Wow. Some of you guys just cannot grasp what the concept of "free market" means, huh?
Fannie and Freddie were both created by government. They were both given implicit guarantees by government, which is why they had access to cheaper capital than any of their competitors. Government controlled how much they could lend. When the numbskulls who ran those two organizations could not figure out what their numbers were, government gave them special exemptions so they did not have to report any quarterly or annual reports to the SEC for two years.
That might be mercantilism. It might be a form of fascism. It might even be a form of "state capitalism."
But it ain't no free market. No way. No how. |