It's an entirely government (socialism) created mess!

Fannie and Freddie were created by CONGRESS, who also dictates their loan numbers and capital requirements. Fannie and Freddie do not have to pay state and local income taxes, nor do they have to follow the basic accounting standards that are required of all private businesses. They aren't even regulated by the SEC!

As far as those "Evil Wall Street" guys ... everywhere they went wrong, they were simply following Washington's marching orders.

All commentators: head my words. Go look at the Case Schiller "inflation, size, quality" adjusted housing index. Just Google it. You will find it. This is the most instructive data series you will look at in your entire lives. After being flat, in Q3 of 1996 housing prices took off like a rocket. They peaked in the first quarter of 2006, ten years later.

Now ask yourselves: Was the housing bubble Bush? Bush's lax regulation? (Oh, wait, housing took off and he wasn't elected yet!!!) Greenspan?

What happened in 1996 that made housing prices take off???? (Note, Bush haters: 50% of the housing bubble occurred before Bush even took office. WTF?)

Greedy bankers? Lax regulation?? Crappola.

Flumoxed????

Ask yourselves what policy decisions were being made in 1995 and 1996 that might make housing prices take off for the moon in Q3 1996.

Answer: EZ credit. How's that? Clinton era CRA regulations that said: Banks: give po people loans, or we will bring criminal charges. And crank up them subprime loans! Home ownership is good!! More EZ credit!!!!!

And then the loan syndicators came in.

And then the greedy originators, greedy home buyers, greedy bankers came in.

You know the rest. A feeding frenzy. Kablooey!!!

But it all started with Clinton era, government, social engineering. Protected by Barney Frank. Period.

But the Clinton Legacy Machine doesn't want that out there.

Sad.