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As for Fannie & Freddie — they need to be reigned in and, in time, abolished. This is what happens when government plays in the arena of charity and goodwill. It becomes abused and leaves the taxpayer holding the bag. Other examples abound. Just look at the idiots that build on the coast and have their houses (usually a seond home) destroyed in a storm. They rebuild in the same location thanks to government largesse (flood insurance) which the taxpayer underwrites. Get the government out of the flood insurance business and let people stupid enough to build on the coast or in flood plains pay private insurance premiums that reflect the true cost of their idiocy. Maybe then, when someone has to pay sky high premiums, they'll start to make sensible choices and quite screwing taxpers.
Jessica