On December 9, 2008 a report of the United States House of Representatives Oversight and Government Reform Committee stated that executives at Fannie Mae and Freddie Mac ignored warnings about the risky loans Freddie and Fannie were backing. The video below is of Chairman Henry Waxman (D-CA) reading some of the findings.
What do you think? There seems to be plenty of blame to go around, but it seems particularly disappointing that we cannot rely on the government to avoid such huge mistakes.
I'm sure there is plenty of blame to go around. Sadly we have placed the burden of economic recovery on the governments shoulders. If they can't handle Fannie and Freddie what makes us think they can handle much of anything else.
It's a shame that we are constantly required to bail out these government run agencies - How about helping bail out some of our homeowners facing foreclosure?
Richard, there is much blame to be spread. Sadly, the American People will be the ones who pay. The rich will stay rich and get off scott free.
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