Given that neither "corporation" had any incentive to watch their bottom lines, and the fact that the Feds already supply them with purchases of mortgage securities, this was inevitable. Two more great examples of how egalitarianism (in this case the notion that the government has to help provide below-market loans to low-income people in order to facilitate home ownership) and central banking help ruin an economic system that should instead be driven by private players using their own capital.

Here is the bulk of the text, from the NY Times:
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September 6, 2008