The Left’s Official News Service's False Reporting on Freddie Mac & Fannie Mae

Morning Bell, The Heritage Foundation: The left is beginning to realize that its credibility on economic matters has been seriously compromised by its 40-year relationship with the government mortgage financing duopoly Freddie Mac and Fannie Mae. Witness Rep. Maxine Waters (D-CA) lying on HBO’s “Real Time” about how much money she accepted from the two mortgage giants. Enter McClatchy’s David Glodstein and Kevin Hall. McClatchy operates 32 daily newspapers in 29 markets, with a total circulation of 3.3 million. There are few better outlets through which one can propagate leftist lies. Goldstein and Hall have written an article, “Private sector loans, not Fannie or Freddie, triggered crisis,” which is a masterpiece in half-truths and opinion journalism disguised as hard news. . . .

According to Goldstein and Hill, Fannie and Freddie are innocent in the subprime mess because it was private banks that securitized most subprime loans during the height of the boom. But this Disney version of the truth leaves one huge question unanswered: Who bought all those subprime securities from the investment banks who were securitizing them? You will not learn this in Goldstein and Hill’s hackjob, but according to the Washington Post, at the height of the subprime boom Fannie Mae and Freddie Mac purchased 44% of the entire subprime security market. . . . Countrywide Financial was among the biggest players in the subprime market. It has lost $2.5 billion in just the past year and has another $6 billion in nonperforming assets on its books. Fannie Mae was Countrywide’s biggest customer. This means that, through Fannie and Freddie, you the taxpayer helped subsidize Countrywide’s subprime loan underwriting.

Fannie and Freddie played a primary role in creating our current financial crisis. . . . The U.S. economy cannot afford their continued existence, and dishonest “journalism” from the likes of Goldstein and Hill only provide cover for the left’s crony capitalism. Check this list of McClatchy owned newspapers. If you’re local paper is on the list, write McClatchy and demand the truth is added to Goldstein and Hill’s story. [The Left’s Official News Service]

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Tags: Fannie Mae, Freddie Mac, Heritage Foundation, leftist, Morning Bell, mortgage crisis, newspapers To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!