Not Fannie and Freddie, AGAIN

Barry Ritholtz takes on the "blame the government" crowd yet again.

 
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There is no way to reconcile this chart with the jihadist blatherings of folks like AEI and CATO.
The facts of the matter are simply this: During the housing boom, it was Wall Street, and their mad purchases of Sub-Prime, Alt A and non conforming loans for their privately issued securitization that drove the credit bubble. Not, as the ideologically blinded Peter Wallison claims, Fannie & Freddie.

Don't get me wrong, Fannine and Freddie were part of the problem, but Wall Street was the biggest problem.