?baMa? Tse Dung wrote:
Separating economic myth from economic fact

Myth 1: The government-sponsored housing finance companies Fannie Mae
and Freddie Mac had nothing to do with the housing crisis. They were
simply innocent bystanders caught in the crossfire. Economist and New
York Times columnist Paul Krugman, for instance, has argued that
Fannie and Freddie’s role in the housing market was insignificant
between 2004 and 2006 because “they pulled back sharply after 2003,
just when housing really got crazy.” According to Krugman, Fannie and
Freddie “largely faded from the scene during the height of the housing
bubble.”

Fact 1: Fannie and Freddie contributed to the housing crisis by making
it easier for more people to take out loans for houses they could not
afford. Beginning in 2000, Fannie and Freddie took on loans with low
FICO scores, loans with low down payments, and loans with little or no
documentation.

Fannie Mae is a loan guarantor. She doesn't make loans. Investment banks
crashed the economy. Blame it on Phil Gramm and Bill Clinton, and "W"
for looking the other way.