The reason the financial media blame the GSE's is because thats the only way to spin it as the democrat's fault. Seriously, how could any self respecting journalist ignore the Presidents Working Group on Financial Markets and the 'pre emption' rule.
I know you are determined to blame the GSE's but look who made them buy more low income home loans.
In November 2004 HUD issued a Final Rule that established new housing goal levels for Fannie Mae and Freddie Mac for calendar years 2005 through 2008. That Final Rule also established subgoals for GSE acquisitions of goal-qualifying home purchase mortgages on owner-occupied properties in each of the three overall goal categories…. ….Under the 2004 Final Rule, the housing goals will increase gradually over the 2005-08 period.
seems like W picked the wrong time to force the GSE's to buy more low income home loans