In 1999: Clinton pressures Fannie Mae: Ease Credit To Aid Mortgage Lending
Original post made by Ralphie, Canyon Oaks, on Feb 18, 2009
CHILLING WORDS FROM TEN YEARS AGO:
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
The New York Times; September 30, 1999