The Big Short And The Bigger Myth About Fannie Mae & Freddie Mac

The Big Short And The Bigger Myth About Fannie Mae & Freddie Mac by Josh Rosner, Inside Sources

It was inevitable that “The Big Short,” the screen adaptation of Michael Lewis’s book on the 2008 financial crisis would reopen yet again the debate about what caused and exacerbated the catastrophic collapse.  However, Peter Wallison’s assertion in an op-ed yesterday on InsideSources that it was entirely Fannie Mae and Freddie Mac’s fault just doesn’t hold up.

I consider Peter a friend and respect his intellect. That is why his dismissal of the film as Hollywood fiction is dismaying to me.  To be sure, any time Hollywood takes up current or historic events there will be artistic license that...