September 26, 2008 3:36PM 

# Fannie and Freddie 

By [Chris Edwards](https://www.cato.org/people/chris-edwards) 

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The [*IBD* has an excellent front page ](http://www.ibdeditorials.com/IBDArticles.aspx?id=307241242284619)summary of the 1990s roots to the Fannie Mae and Freddie Mac disaster.

One issue *IBD* touches on is the ineffectiveness of the regulating agency OFHEO. [Here is OFHEO giving Fannie and Freddie a clean bill of health just last December](http://www.ofheo.gov/newsroom.aspx?ID=419&q1=1&q2=None).

One reason that having regulatory agencies is worse than having no suchagencies is the false sense of security provided to markets by such apparently off-base seals of approval.

##### Related Tags 

[Regulation](https://www.cato.org/regulatory-studies) 

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