It is now consensus that Fannie Mae and Freddie Mac are at the heart of the systemic meltdown we are seeing in the mortgage market. They are costing taxpayers billions through their own bailouts and through the role they played in fueling an artificial mortgage boom.But eight years ago, when I testified before Congress that Fannie Mae and Freddie Mac's "special privileges create a serious hazard to the market, to taxpayers (and) to the economy," my criticism of these sacred financial entities was met with ridicule. At the hearing on June 21, 2000, before the House Financial Services Committee, I...
