Last Week’s Market Action Summarized Into A-Two Minute Read – Asian, European, and US Markets. USD Rally A Leading Indicator Of FOMC Surprise.The following is a partial summary of the conclusions from the fxempire.com weekly analysts’ meeting in which we share thoughts and conclusions about the weekly outlook for the major currency pairs.
The Neville Awards Case Against Fannie and Freddie Written by John Lounsbury The Neville Awards is a website that has collected published media reports and opinion about the role of Fannie Mae and Freddie Mac in creating the Great Financial Crisis. The attribution for this section of The Neville Awards is: Compiled by Gary Starr …
by Guest Author Mike Konczal
Sigh. Mayor Bloomberg:
“It was not the banks that created the mortgage crisis. It was, plain and simple, Congress, who forced everybody to go and give mortgages to people who were on the cusp… But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody.”
It seems there are people who can’t accept that some markets, particularly financial ones, are disastrous when completely unregulated — and thus find any far-fetched excuse to blame the government instead. Since this line of argument continues to pop up, how should one respond to the idea that Congress and Fannie Mae/Freddie Mac caused the housing crisis? Here are six facts to back you up:
In the simplest terms, the housing bubble was caused by a flood of liquidity chasing mispriced risk.
The government sponsored enterprises (now government owned) Fannie and Freddie have been castigated as being a significant cause of the housing bubble and mortgage crisis by pushing low income housing. The facts do not support that conclusion.