TheHill.com - Republican report puts blame for housing on Fannie, Freddie: "“The housing bubble that burst in 2007 and led to a financial crisis can be traced back to the federal government intervention in the U.S. housing market intended to help provide home ownership opportunities for more Americans,” declares the first sentence of the GOP Oversight and Government Reform report.
The report tries to center debate on government involvement, rather than Wall Street."
It seems to me that it is hard to separate the respective roles of public policy and private profit-taking in creating the collapse of the housing market. However, there is nothing wrong with the GOP trying to remind people that bad policies played a major role, because since the election all we have been hearing from DC is that corporate greed is the root of all our problems. We have a political economy, not a free market economy.