Blaming Fannie and Freddie
A debate has erupted anew in Washington over whether Fannie Mae and Freddie Mac caused the credit crisis of 2007 and 2008. Their critics claim that these two Government Sponsored Enterprises (GSEs) deserve a lot of the blame because they encouraged mortgage lending to low-to-middle-income Americans, a goal that Congress required and Bill Clinton advocated. The debate, which faded after a brief fluorescence in 2008, has been revived by a new book, *Reckless Endangerment*, by the respected New York Times reporter Gretchen Morgenson and the dogged financial analyst Josh Rosner.
July 13, 2011