Nobel laureate Paul Krugman has written that Fannie Mae and Freddie Mac “didn’t do any subprime lending.” Somehow Krugman seems to have missed Fannie and Freddie’s acquisition of $4.3 trillion in subprime, low down payment (5% or less) and Alt-A loans.  more

The Obama administration today unveiled yet another program designed to prop up the housing market, this time providing additional aid to state and local housing agencies in an effort to keep rates low and expand financing for low and moderate income borrowers.  more

Over the ten year period from 1997 to 2007, Fannie Mae and Freddie Mac purchased $2.2 trillion in subprime loans and securities, many of which were not even classified as subprime at the time.  more