Democrats have spent years arguing that private lenders created the housing boom and bust, and that Fannie Mae and Freddie Mac merely came along for the ride. This was always a politically convenient fiction, and now thanks to the unlikely source of the Securities and Exchange Commission we have a trail of evidence showing how the failed mortgage giants turbocharged the crisis. - The Wall Street Journal, 12/23/2011
Link to entire essay appears below:
Note: for additional perspective, one might consider reading Stanford University economist John B. Taylor’s book Getting Off Track, how government actions and interventions caused, prolonged, and worsened the financial crisis.