It's somewhat implausible that two guys at a Washington think-tank, arguing that the financial crisis was caused by government housing policy, could create a widely accepted alternative to the conventional liberal narrative that the financial crisis was caused by the greed and lack of regulation of Wall Street. 

It's always painful to take on the myths and ideological narratives of the left. The pundits of the liberal (excuse me, "progressive") media make a pretense of listening to reason, but when their views are challenged, they become abusive.

The Financial Crisis Inquiry Commission issued its majority report in January 2011, stating that the 2007-2010 crisis was "avoidable" and caused by widespread failures in financial regulation. Commission member Peter Wallison disagreed.

In less than twenty-five years, government “affordable housing” and other housing policies have turned a healthy market into a financial ruin. Until Fannie and Freddie’s market dominance and the government’s role in the housing finance system are substantially reduced or eliminated, the United States will continue to have an inferior and unstable housing market.

The report of the Democratic staff of the House Committee on Oversight and Government Reform--although it attempts to call my conduct into question as a member of the Financial Crisis Inquiry Commission--actually indicts the Commission.

Fannie Mae did not contribute marginally to the financial crisis. It was the source of the declining mortgage underwriting standards that brought down the system.

The overall direction of the Commission majority's report was determined before the Commission started its work. Throughout its 18 month life, the Commission focused only on issues that the chairman wanted to cover, was more interested in publicity than in a thorough investigation, and never paid serious attention to other views. It was not in any sense an objective or thorough study, did not produce any facts or data that could aid scholars in the future.

AEI's latest housing finance plan eliminates the need for government guarantees and permits the gradual elimination of Fannie Mae and Freddie Mac.