Think Progress wrote Bachmann Defends Using Federal Loans She Denounced: ‘It’s Almost Impossible To Buy A Home’ Without Them. "Most recently, the Washington Post discovered that Bachmann and her husband signed for a $417,000 home loan backed by Fannie Mae or Freddie Mac just weeks before she called for the two mortgage giants to be entirely dismantled."
Bachman said: "Clearly I think this is the problem. Now unlike all of you, who I’m sure pay cash for your homes, there are people out there like myself who actually have to go to a bank and get a mortgage. And this is the problem. It’s almost impossible to buy a home in this country today without the federal government being involved. Whether it is with the FHA, whether it’s with Fannie, whether it’s with Freddie, it’s almost impossible to buy a home. One thing we need to remember is that Fannie and Freddie were the epicenter of the financial meltdown. I sat on the financial services committee and I watched as this occurred. What’s important is that we do dismantle a number of these federal programs that everyone agrees are clearly out of control."
There's just so much wrong with this. You can't get a home without them so we should destroy them and make it impossible to buy a home. Ok, maybe she just means to go back to the way it was before Fannie and Freddie but there wasn't a lot of home ownership in the 1930s, certainly not by the middle class.
And Fannie and Freddie were not the epicenter of the financial crisis. They got into subprime loans late and the real problem was Wall Street betting on them with unregulated derivatives that built a huge house of cards. And what does she mean she watched as this occurred? She became a Congresswoman in 2007, if she watched as this happened why didn't she do anything about it?
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