CEO OF FANNIE MAE TESTIFIES TO CONGRESS THAT SOCIALISM CAUSED THE ECONOMIC COLLAPSE

Roger Mudd, the former Fannie Mae President and CEO testified thusly before Congress the other day. (From Limbaugh's Blog):

I believe in retrospect that there was overinvestment in housing. I believe in retrospect origination standards slipped. Home ownership rates probably rose too high.

The GSEs (Government Supported Entities, meaning Fannie Mae and Fannie Mac) were chartered to expand and increase home ownership -- while operating as private companies.

In doing so, they contributed to the crisis, but they did not precipitate it.

In other words, government-owned mortgage companies, who were told to give mortgages to people who could not ordinarily afford them, "contributed" to the current economic "crisis".

He says, "They (the GSE's) did not precipitate it (the economic collapse)", but I think it is safe to say that everyone knows that this crisis started in the Mortgage industry.

The government should never tell banks to lend money to people who are not good risks. That is not only anti-Freedom, it is theft.

Would you want the government to tell you who to loan your money to? If they did, wouldn't you consider it theft?

Get the government out of the economy. Let the Free Market work on it's own.