New York Times had this to say in 1999 about Freddie, Frannie, Bill Clinton, Franklin Raines(Obama adviser)
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.This article is dated exactly 9 years ago to today's date- September 30, 1999.
Here we are 9 years later getting ready to bail out the government for their massive mistake. I know that the folks in Washington have managed to point to Wall Street as the creator of this problem.
As you can see, Wall Street is not entirely to blame here.