Sept 30, 1999 – Fannie Mae created – Economic disaster foretold.

Fannie Mae Eases Credit To Aid Mortgage Lending
Published: September 30, 1999

This article says:

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

I guess that Peter Wallison can do a big I TOLD YOU SO.

What does Peter Wallison have to say now about the bailout? He has written a series of short articles on the subject. They are well worth the read.

Deregulation Not to Blame for Financial Woes Sept 30, 2008
The Last Trillion-Dollar Commitment (The Destruction of Fannie Mae and Freddie Mac) Sept 30, 2008
The $700 Billion Man: A Symposium – Sept 25, 2008
Blame Fannie Mae and Congress for the Credit Mess Sept 23, 2008