Fannie and Freddie were knowing and active parties to the fraud on the entire nation that was committed when vast amounts of money were funnelled into the purchase of overpriced homes.
Yes, they were partly tools of Barney Frank and Chris Dodd and other pols, and of Angelo Mozilo and other mortgage fraudsters. And they were partly responding to loose credit conditions fostered by Greenspan and supply-side Republicans and businessmen. But the people running Fannie and Freddie knew exactly what they were doing, and they were pushing to do more of it.
The truth is that there were very few people who are blameless. Close to 90% of the population of this country were hoping for a giant free lunch from ever-rising asset prices of assets bought with other people’s money. But leaders of the key institutions bear special responsibility, in order of their power:
1. Congress
2. White House and Treasury/Fed Reserve/ SEC etc.
3. Media (who are leaders of public opinion)
4. Real estate and mortgage industry
