Romer: We Need to Get Fannie and Freddie to ‘Lend Like Crazy’
Chair of the White House Council of Economic Advisers, Christina Romer, appearing on CNN yesterday morning:
KING: Mr. Liddy said he is going to break up AIG. Do we need to break up Fannie and Freddie?
ROMER: I think that is certainly going to be an issue going forward. I think it should be part of the overall financial regulatory reform, to figure out what is the best way.
Again, you know, anytime we have now got taxpayer money on the line, what we have an obligation to do is do it in a way that protects the American taxpayer. What is going to be the way that gets these institutions safe, gets them doing what we need them to do, which is lend like crazy, and just basically functioning again for the economy.
Wasn’t Fannie and Freddie “lending like crazy” what got us into this mess in the first place?