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Poole: Save Fannie/Freddie, Then Dismantle Them

Posted on July 27, 2008

Its actually kind of ironic: Two Fed Governors warn Federal Reserve Chief Alan Greenspan about major problems -- and are promptly ignored by the maestro. Ed Gramlich on subprime and predatory lending, and Bill Poole on Fannie and Freddie. In the Sunday NYT, Poole argues that now Fannie and Freddie must be saved for systemic reasons -- but then taken apart: CRITICS of the Congressional housing package complain that we are now committing taxpayers to huge new outlays to rescue Fannie Mae and Freddie Mac. That view is wrong: Congressional inaction over the past 15 years had already committed taxp...

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budget , fed , greenspan , housing