Daily Archives: September 26, 2008

Give it up for Peter Wallison

From the New York Times, September 30, 1999, Fannie Mae Eases Credit To Aid Mortgage Lending by Stephen A. Holmes:

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

Full article here.

(h/t The Corner)

The Crisis

Oh, maybe I should explain.

Another reason I liked the previous quote from The Mayor of Casterbridge so much is because of the financial meltdown we’ve been experiencing lately. And the bailout plan that’s been floated by Secretary Paulson.

Yesterday there was theĀ  big summit at the White House, trying to hammer out a final deal. Apparently the House Republicans staged some sort of revolt, also apparently with the support of Senator McCain. I imagine the scene as something like this:

[W]ith the demand and response of real cash the jovial frivolity of the scene departed. A lurid colour seemed to fill the tent, and change the aspect of all therein …

You think?