NY Times Predicted Bail Out in 1999-Truth!

New York Times Article Predicted 2008 Bail Out in 1999-Truth!

Summary of eRumor:

An eRumor with an attached news article from the New York Times from 1999 predicting the 2008 financial crisis, that the Government would intervene and casts blame on the Clinton Administration for pressuring Fannie Mae to extend credit.

The Truth:

Steven A. Holmes wrote this article for the New York Times on September 30, 1999 and it is posted in in the news paper’s archives.  The story reported that Fannie Mae was under pressure by the Clinton Administration to “extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.”   The article goes on to say that Fannie Mae was taking on significantly greater risks in doing so and predicted a government intervention to bail them out.

Click for New York Times article

updated 10/03/08