As you continue to hear that Fannie and Freddie caused the crisis, remember, it's partisan nonsense.
Fannie/Freddie Market Share Plummeted During Boom:
from The Big Picture"You may have missed Matt Phillips massive read Friday afternoon on the GSEs in the WSJ blog Marketbeat.
The entire piece is definitely worth your time, but I found one chart especially compelling: It shows Fannie & Freddie’s market share plummeting from over 70% to under 40%, as Wall Street securitized all manner of non-conforming mortgages:
There is no way to reconcile this chart with the jihadist blatherings of folks like AEI and CATO.
The facts of the matter are simply this: During the housing boom, it was Wall Street, and their mad purchases of Sub-Prime, Alt A and non conforming loans for their privately issued securitization that drove the credit bubble. Not, as the ideologically blinded Peter Wallison claims, Fannie & Freddie.
Class dismissed."
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