UncleLongHair

Fannie and Freddie Are Largely Responsible for the Housing Bubble

Correlation is not causation. FNM and FRE are impacted by the housing problems more than anyone else because they handled more mortgages than anyone else. If simply creating these entities "caused" the bubble, why haven't we had more bubbles over the past 70 years?

Other institutions are just as much to blame, if not moreso, than FNM and FRE, such as the reckless subprime lenders and ratings agencies that blessed their securities. Are FNM and FRE to blame for their actions as well?

>>> Clearly it doesn't take much of a writedown on 5.2 trillion dollars to wipe out any private equity that Fannie and Freddie may have <<<

The $5.2 trillion of mortgages held by FNM and FRE are not on their balance sheet, and thus can't be "written down".

Uncle