Who Controls America

by Mark Mullen

Remember the housing bubble crises of 2008? The federal government charged Fannie Mae and Freddie Mac with buying high-risk loans from private lending institutions. Once Wall Street banks realized that Freddie and Fannie would buy bad loans, mortgage lenders began handing out over-sized loans to middle class citizens who wanted, but could not afford, a larger home. After all, the banker made his money up front from Freddie and Fannie. No waiting thirty years for the borrowers to repay. Instant profit paid in full by Uncle Sam. And the more bad loans private lenders could sell to Freddie and Fannie, the more risk-free money the banks made. If the homeowner defaulted on the loan, Freddie and Fannie—not the lending institution—suffered the loss.