Burned Investors Call for Government Bailout

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
Freddie Mac.


Recent Publications


John Berlau on
OpenMarket.org (7/14/08):

Warnings from Fred Smith in 2000 and Beyond

Bader on OpenMarket.org (7/14/08):
Than Enron: Bailout for Fraud-Ridden Fannie Mae

Hans Bader on
OpenMarket.org (7/12/08):

Bank Failure While Congress Pays off Special Interests

John Berlau and
Eli Lehrer OnPoint (4/10/08):

A Flawed Blueprint: A
Free Market Analysis of the Treasury Department’s Financial Regulation Proposal

Press release (4/3/08):

Senators Investigate
the Credit ‘Crisis’: Bear Stearns – JPMorgan Chase Deal under a Microscope

Press release (3/31/08):

CEI Opposes Broad New Powers
for Federal Reserve: Praises Streamlining Effort Among Agencies

Eli Lehrer and Matthew Glans OnPoint (1/6/08):

The Subprime
Crisis in Historical Perspective

CEI study (1/9/07):

The Liberal
Congress Went to Market: A Bipartisan Policy Agenda for the 110th


Older Material


Fred L. Smith congressional testimony (6/15/00):

On The Future Of The GSEs: Fannie Mae and
Freddie Mac


CEI Experts Available for

John Berlau

Director, Center
for Entrepreneurship


[email protected]

Eli Lehrer

Senior Fellow


[email protected]

Wayne Crews

Vice President for


[email protected]

Hans Bader

Special Projects


[email protected]

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.