[Congressional Record (Bound Edition), Volume 154 (2008), Part 16]
[House]
[Page 22682]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       PREDICTABLE AND AVOIDABLE

  (Mr. WILSON of South Carolina asked and was given permission to 
address the House for 1 minute and to revise and extend his remarks.)
  Mr. WILSON of South Carolina. Mr. Speaker, as we debate the beginning 
of the financial crisis, it is important to cite a New York Times 
article published on September 30, 1999, which highlights the dangers 
of Fannie Mae easing credit requirements for loans it plans to 
purchase.
  According to the author, the decision by Fannie Mae was meant to 
``spur banks to make more loans to people with less than stellar credit 
ratings,'' and he forecasts that ``Fannie Mae is taking on 
significantly more risk.'' They ``may run into trouble during an 
economic downturn, prompting a government rescue similar to that of the 
savings and loan industry in the 1980s.''
  These views were shared by Peter Wallison of the American Enterprise 
Institute, who remarked that ``the government will have to step up and 
bail them out.'' These are voices from the past predicting the problem 
we face today.
  Indeed, it was not the failings of the free market, but the failure 
of those participating in the markets, as well as government 
mishandling, that has led to this current dilemma.
  In conclusion, God bless our troops, and we will never forget 
September the 11th.

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