Original Sin

clipped from online.wsj.com The response? Rep. Barney Frank, who now vilifies Republican House members for questioning a policy of throwing another $700 billion on the bonfire "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." The tale of lost opportunities and thwarted reform is a long one. As a reporter who covered the savings and loan meltdown of the late 1980s, I wish I had paid more attention to the next impending disaster. I knew Fannie Mae and Freddie Mac were bad-faith actors. I just didn't realize how much their recklessness would spread to other players in the financial markets and create the conditions for the current meltdown. But make no mistake. When the history of this debacle is written, Washington's failure to supervise and rein in Fannie and Freddie will be seen as the original sin.