Krugman Tried to Lie

But he was foiled by facts. He said Fannie Mae and Freddie Mac "weren't involved" in the "subprime loan" fiasco because they weren't allowed to buy loans without adequate down payments and proof of ability to pay the loan back. He described it as "reasons why regulation works." Unfortunately, that's not true. Fannie and Freddie were involved in $434 BILLION dollars' worth of such loans in just two years between 2004 and 2006. Their failure is proof that "regulation (such as that provided by liberal Democrats who just wanted "poor people" to own their own homes to buy votes) does NOT work. They try to complicate it (FHA, Freddie Mac, Fannie May, and other unintelligible acronyms) so you can't understand it, but it's as simple as that. (Café Hayek)