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McClatchy Investigation Puts the Lie to Neil Cavuto

Reported by Melanie - October 12, 2008 -

Neil Cavuto, the managing editor of "business news" at the Fox "News" Channel and the anchor of its "premiere business news" show, Your World w/Neil Cavuto, has oft stated of late that the financial crisis was borne of the Democrats' push to get Fannie Mae and Freddie Mac to lend to "minorities and risky folks," which, "is a disaster." (He has since moved on to claim that the mess is due to people withdrawing money from the stock market because Barack Obama intends to raise the capital gains tax.)

But thanks to David Goldstein and Kevin G. Hall of the McClatchy Newspapers, who took the time to look into that specific claim, which was trumpeted by conservatives (like "fair and balanced news" man Cavuto) across the board, and found it to be an utter falsehood. They even went so far as to quote Cavuto, a guy who's supposed to report news and facts instead of propaganda, in their October 11 article: Private sector loans, not Fannie or Freddie, triggered crisis.

They wrote:

Fannie, the Federal National Mortgage Association, and Freddie, the Federal Home Loan Mortgage Corp., don't lend money, to minorities or anyone else, however. They purchase loans from the private lenders who actually underwrite the loans.
[...]
Between 2004 and 2006, when subprime lending was exploding, Fannie and Freddie went from holding a high of 48 percent of the subprime loans that were sold into the secondary market to holding about 24 percent, according to data from Inside Mortgage Finance, a specialty publication.
[...]

During those same explosive three years, private investment banks — not Fannie and Freddie — dominated the mortgage loans that were packaged and sold into the secondary mortgage market. In 2005 and 2006, the private sector securitized almost two thirds of all U.S. mortgages, supplanting Fannie and Freddie, according to a number of specialty publications that track this data.

Comment: So, while those of us who know how Neil Patrick Cavuto operates and suspected that his claim about "minorities and risky folks" was nothing more than a politically motivated, racist, fear mongering lie, here's proof. Cavuto is a shill for the radical right and he can't and shouldn't be trusted as a source for "business news."