I was sure that Fannie Mae was into that big time during the Clinton years. The market started slowly and exploded in the late 1990s, I thought. A 1986 federal real estate law made it profitable and 1995 financial "globalization" made it even more profitable, I believe.
From Internet sources:
As part of the Tax Reform Act of 1986, Congress created the Real Estate Mortgage Investment Conduit (REMIC) to facilitate the issuance of Collateralized Mortgage Obligations.
Along with a simplified tax treatment, these changes made the (1986) REMIC structure an indispensable feature of the MBS market. Fannie Mae and Freddie Mac are the largest issuers of this security.
I do believe Savage won't say much about Fannie Mae, et al because other talk show hosts are concentrating on them. Truth is important and I will of course defer to others more knowledgeable than me.
FOXNEWS SPECIAL did a Economy Crisis and who is to blame, and they exonerated Bush Administration with the warnings they gave to Congress in 2001, 2004, and last year I think...in 2004 Repubs presented legislation for regulation and Passed in House, died in Senate...no support from Dems.
it showed FRANK, SCHUMMER saying Fannie and Freddie were just fine from 2005 through this past year...it showed Acorn and Obama crying out for more of those no money down subprimes...DEMOCRATS got the blame they deserved...
Savage is not in his strong suit with economic issues. He’s good at sniffing out a rat, but if it’s an economic rat, he has trouble identifying the species and where it came from...