During the Clinton Administration, the New York Times celebrated the disastrous loosening of credit standards that got Fannie Mae in trouble. Brainless liberalism on display. Steven Holmes included the following fateful words:In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. [....]In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. Mr. Holmes either is not smart enough or (more likely) honest enough to wonder why banks and thrifts were pressing....(Read Full Post)