Sarah Palin was right about Fannie and Freddie – The Atlantic

The vindication: The president’s announcement on Tuesday that he planned to wind down government ownership of the two agencies, which, in his words, “were allowed to make big profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag.”

The truth: At the time Palin spoke, the government had only announced its planned takeover of the two agencies a few hours previously — a takeover that hadn’t yet gone into effect. At the time, the Huffington Post spoke with several economists, who disagreed with Palin’s assessment.

Ultimately, the takeover did cost taxpayers a lot of money — in part because of their confidence while making bad bets before the economic crash that they would be relieved by the government.

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