First off I'm not placing blame in any one area. There is plenty to go around. I'm sure you've seen I've stated many times that it's criminal the way we are allowing G.S. (and others off the hook).
That said, the article is full of caca. From your article.
Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.
The facts of the matter.
• 1999, 09. Fannie Mae eases credit requirements for subprime loans. This was done to help low-income consumers purchase homes, and it further encouraged weak borrowers to obtain home loans.
I can provide plenty of sites to verify this.
Going further down the timeline.
• 2002. Fannie Mae and Freddie Mac start purchasing large amounts of subprime mortgages.
Economics of Crisis: The Great Contraction: Timeline of Events
From your article again....
Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion.
Yes, the amount "originated". A totally worthless thing to note. It is the part that should give us an out but isn't though. They were not the originators of these loans BUT as I noted originally and the link I provided shows, they were indeed buying up these "bad" loans.
Banks that originated fraudulent loans were supposed to be on the hook for these loans. We are not forcing them to. Why not?
The Fed bank of NY was Timmy Geithners baby and they aren't about to accept any of the blame.
Explain to us how this is happening.