In Rex Nutting's column "Reality Check" in The Wall Street Journal Sunday, published Oct. 16, he neglects to mention the major shift in Fannie Mae and Freddie Mac in 2003-2004, whereby both began buying subprime loans from banks in the name of helping the poor purchase homes. Without Fannie and Freddie's participation, the banking crisis would have been manageable.
Indeed, Fannie and Freddie paid their executives more than $100 million per year in bonuses on phantom profits and are still suffering huge losses.
Hilton Head Island
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