These three studies are: 1. Sizing Total Exposure to Subprime and Alt-A Loans in the U.S. First Mortgage Market as of 6.30.2008, 2. Sizing Total Federal Government and Federal Agency Contributions to Subprime and Alt-A Loans in the U.S. First Mortgage Market as of 6.30.2008, and 3. High LTV, Subprime and Alt-A Originations Over the Period 1992–2007 and Fannie, Freddie, FHA, and VA‘s Role.

The Securities and Exchange Commission's lawsuits against six top executives of Fannie Mae and Freddie Mac, announced last week, are a seminal event.

The likely nomination of Elizabeth Warren to serve as the director for the newly established Consumer Financial Protection Bureau is suspicious due to her questionable and seemingly biased research methods.

Discolsures contained in SEC complaints further validate the necessity to look behind Fannie and Freddie's characterization of subprime loans.  

Efforts to blame the banks for the financial crisis are failing because they are not supported by data. The key fact is that, by 2008, before the crisis, half of the 54 million mortgages in the U.S. financial system were subprime and other low-quality mortgages.

When the bubble deflated in 2007, an unprecedented number of weak mortgages went into default - those that were held or guaranteed by Fannie and Freddie, and those that had been securitized by Wall Street. This drove down housing prices and threw Fannie and Freddie into insolvency. 

The American financial system, if it remains true to its history, will adapt and innovate its way back to profitability and high stock prices sooner than is suggested bycurrent dire predictions.

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.