Fannie Mae and Freddie Mac

So I was sitting watching The Kudlow Report today and Kudlow stated something along the lines of, it isn't banks that are causing this financial crisis... It's Fannie Mae and Freddie Mac. Let me just set the record straight. It was NOT the fault of the government agencies designed to be providers of secure lending to underprivileged people. It was the shameful greed of America especially those on wall street, the government officials preaching deregulation, but most sadly the majority of the population who decided with all these fancy financial instruments I can live well above my means and hope that everything goes up a lot so in 15 years I can sell houses at a profit. It is ridiculous to think that people purchased so many loans that within two years they completely crashed our financial system, and yet nobody caught on. Anyway, I've digressed. I think with help Fannie Mae and Freddie Mac can conservatively recover and later down the line resume command of issuing loans to lower income citizens of the United States of America so we can have a working class.

Also, the housing market will recover but it will be on much lower income homes. I'd say houses you could build and sell to people for $50,000. When we figure out how to make living in a $50,000 home feasible and enjoyable then the housing market will recover to before bubble periods.