Fannie/Freddie Market Share Plummeted During Boom
Posted By Barry Ritholtz On February 15, 2011 @ 6:56 am In Bailouts,Real Estate,Really, really bad calls | Comments Disabled
You may have missed Matt Phillips massive read Friday afternoon on the GSEs in the WSJ blog Marketbeat [1].
The entire piece is definitely worth your time, but I found one chart especially compelling: It shows Fannie & Freddie’s market share plummeting from over 70% to under 40%, as Wall Street securitized all manner of non-conforming mortgages:
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[2]
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There is no way to reconcile this chart with the jihadist blatherings of folks like AEI and CATO.
The facts of the matter are simply this: During the housing boom, it was Wall Street, and their mad purchases of Sub-Prime, Alt A and non conforming loans for their privately issued securitization that drove the credit bubble. Not, as the ideologically blinded Peter Wallison claims, Fannie & Freddie.
Class dismissed.
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Source:
Fannie and Freddie: The Saga in Charts [1]
Matt Phillips
Marketbeat, February 11, 2011
http://blogs.wsj.com/marketbeat/2011/02/11/fannie-and-freddie-the-saga-in-charts/
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URL to article: http://www.ritholtz.com/blog/2011/02/fannie-freddie-market-share/
URLs in this post:
[1] Marketbeat: http://blogs.wsj.com/marketbeat/2011/02/11/fannie-and-freddie-the-saga-in-charts/
[2] Image: http://www.ritholtz.com/blog/wp-content/uploads/2011/02/OB-MK956_FANFRE_NS_20110208232002.jpg
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