Ironically, Raines was right. It was Fannie and Freddie's practice of
providing risky mortgages to low- and middle-income buyers that fueled
the housing bubble and led to this spectacular bust. Policy trumped
economics, and now we're all footing the bill. Thanks Frank.

On Tue, Sep 9, 2008 at 10:14 AM, Sam  wrote:

> But the bill has faced a lot of opposition, mostly from Democrats.
> When Raines was still at Fannie Mae (he was forced out in 2004), he
> tried, in Sununu's words, "to slow-walk the process. Frank Raines
> decided they were stronger and better and smarter than everyone else,
> so they would push back." Democrats allied themselves with Raines and
> said they worried that reform might harm Fannie Mae's ability to
> provide mortgages to low- and middle-income homebuyers.

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