ONE MORE TIME...

Fannie and Freddie DID NOT CAUSE THE CREDIT CRUNCH. In fact, they were VICTIMS, not perpetrators. (h/t Barry Ritholtz)

Alan White breaks it down for us:

1) Fannie and Freddie do not originate mortgages
2) Fannie and Freddie issued less than 1% of the subprime securities
3) As of the end of 2007, Fannie and Freddie held only 15% of
outstanding subprime securities.