Fannie Mae And Freddie Mac's Prime Mortgages – The Big Short

Fannie Mae And Freddie Mac’s Prime Mortgages – The Big Short by Peter J. Wallison, Inside Sources

The arrival of The Big Short in theaters a few weeks ago has reignited interest in the causes of the 2008 financial crisis. If you believe that the crisis was caused by greed and recklessness on Wall Street then you’ll like this film. Paul Krugman, writing on the op-ed page of the New York Times, liked it immensely, apparently thinking a Hollywood version of reality was fact.

We can all agree that the financial crisis was caused by a “mortgage meltdown” mostly among subprime and other risky mortgages. What neither this film nor the greed narrative tells us, is why there were...