|
Mark Zandi, chief economist for Moody’s Analytics, recently wrote this opinion piece in the Washington Post stating that the much-maligned Fannie Mae and Freddie Mac shouldn’t be blamed for the housing bubble. While they made many mistakes, the biggest offenders came from the private sector, including “lenders who originated home loans, investment bankers who packaged them into securities, rating agencies that misjudged these securities, and global investors who bought them without much, if any, study.”
“Despite Fannie and Freddie’s role in the panic, it is wrong to blame them for creating it; that distinction belongs rightly to the private mortgage market,” Zandi concluded.
