McClatchy Bluntly Shoots Down Fannie/Freddie Myths

One gets so inured to the silly way of doing business in the media, where the obsessive need to "balance" the scales on any given topic has overwhelmed the need to actually assert that truth does tend to accrue to one side in a dispute of fact. That's why it's so heartening to see somebody, in this case, McClatchy Newspapers, writing ledes like this, in a story entitled, plainly, "Private sector loans, not Fannie or Freddie, triggered crisis":

As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail.

Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.

Federal housing data reveal that the charges aren't true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis.

And from there, rather than decorate their article with a bunch of rhetorical nonsense designed to level the playing-field for a side that's determined not to play, the reporters here -- David Goldstein and Kevin G. Hall -- simply lay out evidence that backs up their claim. Moreover, despite having named two disputants to their case, in this case Neil Cavuto and Charles Krauthammer, Goldstein and Hall prove themselves resistant to the idea that status somehow equates to authority, and points out where the other side is wrong.

What can I say? It turns out this sort of journalism is possible!

Comments

[brenna1975]

Maybe this will finally shut down the youtube video "Burning Down the House" which extensively places the blame on Fannie and Freddie and in turn Obama, Dodd and Frank. This video is viral on youtube and I pray that none of Obama's supporters bought or will buy into it.

[realpolitic]

The McClatchey guys are heroes. They were right on the buildup to the war too that most of the evidence for Iraqi WMD was fabricated or hotly disputed. They are one of the few voices in journalism not swayed by corporate interests or access or political pressures.

[buggedabouttheus]

McClatchy has the BEST investigative reporters in the country. Some papers have one or maybe two really good investigative reporters. McClatchy has the best TEAM of investigative reporters and they bring it.

Buy McClatchy stock. Keep the light on.

[TrooAmerican]

I havent seen anyone blaming FM and FM for the meltdown?????

I think its been pretty well explained that the two of them were acting like banks in purchasing the SubPrime and Alt-A loans that others were writing, and when they started defaulting a lot, and the housing crisis got worse in the field, those Securities packages became near WOrthless on the open market for every bank that held those hot-potatos.

NOT that they are literally worthless, some are actually producing income from those still making payments, some are holding valuable real estate some have been sold....

the key is - how much lower are they really worth than the original sale prices when they were "High profit" items? No one knows, thats the problem, and since there is more risk yet to more homes defaulting, the ones being held are worth something in real money, but on the open market no one wants to purchase them and take the risk anymore. Thats why they are being listed as worthless assets by banks who now have little cash because they invest it all, and relied on InterBank Loans to pay their bills, while they spent all there capital on investments, their personal salaries and bonuses, and shareholder dividends.

[milo h minderbinder]

It's about time someone reported this.

There has been a huge misconception that FM caused the crisis when they were actually doing things in a far safer manner but were brought down by private sector companies taking huge risks and causing a domino effect.

[Jules1]

How many black people did you see at the RNC, they kept showing one guy over and over on TV, that Sherri on the View even talked about it.

[milo h minderbinder]

If I remember right, the news said there were about 30-40 black delegates in the entire convention.

[Cooper1608]

That Sherri, sounds a little like that one. Could you drop the that next time. Thanks.

[shadowpoodle]

I too found it amazing, if not completely predictable.

It really provides a wonderful window into how ingrained institutional racism is in the conservative movement. They don't suffer from human frailties like "shame" or "guilt" so projecting their shortcomings or failures onto others becomes the default position for any arguement.

I find it interesting that during a crisis like Katrina, conservatives can't see or don't care about the plight of poor black people, or the response of the relief effort, until the media calls them on it. Three years later when the housing markets are collapsing, there's a concerted effort to shift blame to lower income people of color.

I could handle the racism a lot easier if the culprits just admitted to it and didn't try to present this meme as a matter of "balance".

[illinoisan]

"They don't suffer from human frailties like "shame" or "guilt" so projecting their shortcomings or failures onto others becomes the default position for any arguement."

Insightful. Perfectly describes my ex-wife.

[WoodyIV]

Does any one know how I can send this to Joe S. of Morning Joe fame?? He has made a point of getting this wrong daily.

[PimpOmega]

I wouldn't bother. Once Morning Joke is stuck on his talking points, he's loathe to deviate from the script. I'd just fluster him on the comment section of his show's homepage and only if you're a serious glutton for punishment. :P

[illinoisan]

Mabye he could have Nobel Laureate Paul Krugman come on his show and explain it to him.

[realpolitic]

I agree. Morning Joe, though he says he has divorced himself from token loyalty to the Bush administration, uses the same tired talking points, and surprisingly, no one disputes him. When someone tries he will not let them get a word in.

[WoodyIV]

Way to go!! A dialog of truth is possible. Could this type of journalism be the beginning of a movement?? One that re-establishes the fourth estate as a useful thing, like in the days of Cronkite??
We can only hope!

[Rog49Thomas]

Who you going to believe - a newspaper group which has an excellent record of journalism or some 72 year old crank?

Pretty easy to make that call - especially in our racially tolerant country.

[emcd]

Thanks again to McClatchy org and reporters for maintaining journalistic integrity!

They have a daily email service. Why not sign up and support journalistic standards rather than the usual MSM shills that are everywhere.

[JesustheLiberal]

Did you know a scientific study has concluded that when a conservative has been shown total and irrefutable evidence contrary to their beliefs that they cling to their failed and debunked beliefs even more.....talk about spitting into the fan!

No wonder they are in such a frothy mood lately. All the facts on the ground, in the media and right in front of their noses must be frying their brain cells by the hundreds. ( I use "hundreds" as I seriously doubt they number in the millions like a liberal's brain)

I know conservatives hate science but even they would have a hard time arguing against the conclusions drawn from that study!

[Rog49Thomas]

I thought liberals watched Oprah religiously.

Didn't you see the show about "The Secret"?

It can be applied to politics as well.

BTW nice nom de net.

Does it imply there are other Jesuses out there? Maybe with different political leanings?

[Dystopic]

Jesus was a liberal, plain and simple. A Radical Bleeding Heart Liberal at that

[lennix]

cnn and fox one of the same doing what they do best race bating

[Tulka2]

Yeah. It's sort of breathtaking to watch a right-wing talking point get rolling, isn't it? First someone like old Pat Buchanan runs it up the flag pole (Buchanan is probably ground zero for this theory, btw). Then, the lesser lights began to say it seriously, "Poor people (read black people and single moms) should not have been given house loans they could not afford".

"It's poor people that caused this mess." What nerve and self-delusion, eh?

[Rog49Thomas]

well, you've probably noticed how the poor generally get their way in our country.

everything they want they get - except a decent living wage, good housing, medical care, etc.

pretty scary stuff when you think about their influence

[JesustheLiberal]

I'm just beside myself that we allow the aluminum can recycling industry be controlled by all those greedy homeless people. How dare they hoard the aluminum cans.

I think this is where Rush,Hannity and Ultra--Super American Bill O'Reilly should be devoting their energies because I smell the stench of socialism being passed off as homelessness....it's gotta be some kind of poor people scam!

[Shannon2008]

Yes. I've written several letters to CNN urging them to stop feeding the perception that the mortgage crisis was the result of bad loans to minority borrowers. It's disgraceful that the media is allowing the Republicans to scapegoat minorities. Here is part of what I wrote:

In response to a segment that aired to day regarding the struggles of a family to make ends meet, I would like to push CNN to present a balanced view of reality. I know that the set of circumstances that this particular family is facing is real. However, the vast majority of subprime borrowers who defaulted on their mortgage contracts are Caucasian. This is due to the fact that Caucasians took out a majority of the subprime loans. It is true that a majority of the loans made to Blacks were subprime loans. I think the percentage is around 50%. The percentage of loans made to Hispanics that were subprime is around 40%. The percentage of loans made to Caucasians that were subprime is around 20%. For subprime borrowers, all three of these ethnic groups defaulted at the same rate, around 19%.

The ethnicity of the borrower has nothing to do with the borrowers ability and/or willingness to pay. It's not about race.

[robXdion]

CNN has always peddled soft racism while Fox News goes hardcore.