The week's biggest financial news

The Fed defends the housing bubble, Fannie Mae's CEO resigns, and Obama wants to convert foreclosed properties into rentals

By , Guest blogger

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    Federal Reserve chairman Ben Bernanke answers questions following a speech in this file photo. Bernanke called the drop in the housing market a "healthy thing."
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The Wall Street Journal Friday noted the lack of prescience at the Federal Reserve prior to the crisis: “…But Mr. Bernanke described the cooling of the housing boom as a ‘healthy thing.’

‘So far we are seeing, at worst, an orderly decline in the housing market,’ he said.”

Fannie Mae’s CEO, Michael Williams, resigned this week. Said Williams: “I am extremely proud of what we have achieved together, and I am confident that they will continue to make a positive difference.” Freddie Mac’s CEO is also on the way out, by the way.

Recommended: US currency quiz

The Obama Administration announced this week that it wants to convert foreclosed properties to rentals. It is ” a pilot program to sell government-owned foreclosures in bulk to investors as rentals.” Since this is a partnership with government-owned corporations Fannie and Freddie, this program is likely to manifest itself as yet another investment opportunity only for massive, politically-connected enterprises. Small investors will very likely need not apply.

US Senator Jim DeMint declares in South Carolina: “If You Don’t Listen To Ron Paul…The Federal Reserve Is Gonna Destroy Our Monetary System” 

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