Monday, December 15, 2008

Gingrich & Freddie Mac

Newt Gingrich remains popular on the right.  But anyone thinking of supporting him for any future bid for office might want to read this article.  Republicans rightly attacked Democrats for their connections to Fannie Mae.  But it turns out that prominent Republicans helped block tighter regulation of Freddie Mac., including Newt Gingrich.  He received $300,000 from Freddie Mac in 2006 to trumpet the "benefits of the Freddie Mac business model."  What was the impact of Republican lobbying by Gingrich & others? 

The tactics worked — for a time. Freddie Mac was able to operate with a relatively free hand until the housing bubble ultimately burst in 2007.

Now Freddie Mac and its sister company, Fannie Mae, are in financial collapse and under government control

The GOP doesn't need politicians like Gingrich back in power.

h/t Daniel J. Mitchell at Cato@Liberty

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