Fannie and Freddy’s problem was one of too little capital. This didn’t have anything to do with the massive non-conforming lending by shadow banks,the credit default swaps, the misrated debt and the other craziness that was the actual problem.
“The Bush Admin and Senator McCain warned repeatedly about Fanny Mae and Freddy Mac and what thus became the 2008 financial crisis”
That was a symptom, but they NEVER warned there would be a crash in prices, as Shiff, Me, and that Big Short guy did.