It wasn’t just Fannie January 20, 2012 at 7:49 am
Jonathan Weil, as so often, has a good article on Bloomberg. He trashes the ‘Fannie and Freddie were the cause of the crisis’ thesis, pointing out that
there was no single cause. What we can say is this: But for the actions of a vast number of actors, including Fannie and Freddie, the crisis wouldn’t have happened the way that it did.
Quite right. As I suggested in my account of the Crisis, there is no single cause, nor a single bad guy who we can blame. The Crisis was caused by a complex interaction between the design of various element of the financial system and the incentives of various parties within it. Blaming Fannie for the crisis is like Woodrow Wilson for the second world war. Sure, he might have had something to do with it, but other things were happening too…