Washington, D.C., July 16, 2008—With the recent collapse of IndyMac
bank in California
and billions in losses at Fannie Mae and Freddie Mac piling on top of the existing
subprime mortgage meltdown, financial managers are understandably jittery. The
more opportunistic of them are now jockeying for more government money,
subsidies and loan guarantees to prop up their failing investment decisions.
Many of these “solutions,” however, and exactly want helped precipitate this
crisis in the first place.
policy experts of the Competitive Enterprise Institute have been tracking the
credit crunch as it has spread to mortgage lenders, hedge funds, investment
banks and government sponsored financial enterprises. They’ve also been
weighing in on the proposed solutions, most of which have called for more rules
and government power rather than elimination of the perverse incentives which
helped cause the problems in the first place.
CEI has long proposed phasing out government support for Fannie Mae and
John Berlau on
Bader on OpenMarket.org (7/14/08):
Than Enron: Bailout for Fraud-Ridden Fannie Mae”
Hans Bader on
John Berlau and
Eli Lehrer OnPoint (4/10/08):
Press release (4/3/08):
Press release (3/31/08):
Eli Lehrer and Matthew Glans OnPoint (1/6/08):
CEI study (1/9/07):
Fred L. Smith congressional testimony (6/15/00):
CEI Experts Available for
Vice President for
CEI is a non-profit, non-partisan
public policy group dedicated to the principles of free enterprise and limited
government. For more information about
CEI, please visit our website at www.cei.org.