The Wall Street Journal expects the SEC lawsuit against against six former Fannie Mae and Freddie Mac executives will show that those two companies were central to the housing crisis, contrary to popular progressive fiction.
Far from being peripheral to the housing crisis, the SEC lawsuit shows that Fan and Fred were at the very heart of it. Private lenders made many mistakes, but they could never have done as much harm if Fan and Fred weren't providing tens of billions in taxpayer-subsidized liquidity to lend on easy terms to borrowers who couldn't pay it back.
We knew that, but it won't hurt to hear it again.
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