Why does Fannie and Freddie keep getting blamed for the economic crisis?

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According to this: http://www.mcclatchydc.com/251/story/53802.html

*More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.

*Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.

*Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that’s being lambasted by conservative critics.

So why does Freddie and Fannie still get blamed anyways?
Also the top 25 subprime mortgage lenders: http://ml-implode.com/top25-Q206.html

7 Comments
  1. Reply
    andy
    May 4, 2011 at 12:39 am

    Because they bought and sold some of these same subprime mortgages and they also were padding the bank accounts of key people in Congress like Barney Frank. You are also partially mistaken since no one blames just Freddie and Fannie, but they did help the mess.

  2. Reply
    WhiteHouse Watching
    May 4, 2011 at 1:06 am

    Because they are to blame. Fannie and Freddie are the guarantee agency of the government The banks made the loans with much pressure from Clinton, Reno, Dodd and Frank and Obama(filing lawsuits) to make loans to people who did not qualify. i.e. people without proof of income, illegal aliens etc.

  3. Reply
    justagrandma
    May 4, 2011 at 1:45 am

    Republicans think they have found a talking point because in 06 when the Democrats won a narrow majority and became chairmen of the finance committees, they might as well have put a target on their backs.
    Up until the summer in fact, I saw interviews where the head of Fannie stated that they had more than enough money and there were no problems.
    In the meantime, Republicans like that bit of amnesia where they forget that for eight years they held the leadership, and for eight years before 06 they held absolute power.

    Then there is the total misstatement of the intention to end red lining and turn it into the excesses of mortagage brokers and their creative financing.

  4. Reply
    Brooklyn Guy
    May 4, 2011 at 1:48 am

    Because the ARE to blame

  5. Reply
    Rob
    May 4, 2011 at 2:36 am

    Straw man argument. No one is claiming that Fannie and Freddy were making the loans themselves.

    What they were doing was announcing that they wanted to buy these bad mortgages. The banks obliged by making more bad mortgages. Of course they are not blameless, and no one is saying they are. They made far more subprime loans than F&F were buying, and that’s why they’re failing too. But F&F did start the whole mess.

  6. Reply
    phil
    May 4, 2011 at 3:29 am

    fannie and freddie ,hid losses and fudged books so that rahm emanuel,and franklin taines could hit targets to get bonuses.fannie and freddie started the domino effect when they melted down.they are not only ones to blame,but they are definitely involved in economy collapse which was orchestrated by the democrats and the federal reserve

  7. Reply
    Jani
    May 4, 2011 at 3:40 am

    I have also heard the Fed was responsible for the interest rates being too flexible. When the variable rates soared, people couldn’t make mortgage payments. That might put responsibility on lenders and borrowers. The truth is that no one wants any credit(no pun) for this mess. But I am more interested in getting out of it, than placing blame. Later, perhaps, when jobs are back.

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