Just another reason why Ron Paul will be a front runner in 2012.
He predicted this 5 years ago.
Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market. This is because the special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions.
http://blog.freeny.org/?p=3548