I'm a liberal professor, and my liberal students terrify me (xpost from Good Reads)

[Mnpaul]

97. I would be mad at the teacher as well

The teacher is obviously poorly informed and shouldn't be teaching it if they don't know the facts.

1. Freddie/Fannie wrote zero subprime mortgages. They are in the secondary mortgage market.

2. The majority of the subprime mortgages were written by mortgage companies to people who had credit scores high enough to qualify for conventional mortgages.

3. Freddie/Fannies exposure was due to investment of profits in fraudulent mortgage backed securities. They were sold as mortgage back securities backed by prime mortgages

4. Freddie/Fannie returned to profitability when the government forced the banks to take their fraudulent securities back. They paid their bailout money back earlier this year and also put 41 billion in profits into the treasury.

The teacher needs to STFU until they get a clue.