Fannie Mae defender trips himself

Robert Kuttner, the liberal co-founder and co-editor of The American Prospect, has written a piece for his periodical that attacks the findings in a new book on the mortgage meltdown, Reckless Endangerment.  The book's authors are a long time New York Times business reporter and a respected independent research analyst.  But Kuttner has trouble coming to terms with the conclusion in Reckless, namely that the revered progressive ideal of homeownership for everyone is a very real culprit. Kuttner's article is entitled "Fannie Backwards" and it basically agrees with the premise in Reckless that Fannie Mae executives, beginning in the 1990's, rode the company into new and dangerous lending practices for personal financial gain.  His objection is that greedy private lenders lead the way in producing millions of shaky loans (notably sub-prime loans) and not the quasi-government entity with the acronym of FNMA!  Fannie only followed along later!  Remember, to those...(Read Full Post)