The Wall Street Journal has this gem of a quote from Senator Chris Dodd(Democrat-Fannie Mae):
On Friday, Senate Banking Chairman Christopher Dodd (D., Conn.) declared that Fannie and Freddie are "fundamentally strong," that fears about their capital are overwrought, and that "this is not a time to be panicking about this. These are viable, strong institutions."
but the Journal warns:
If there's any other good news in all this, it is that the scandal of Fannie and Freddie is at last coming into public focus. The Washington political class has nurtured and subsidized these financial beasts for decades in return for their campaign cash and lobbying support. Wall Street and the homebuilders also cashed in on the subsidized business, and also paid back Congress in cash and carry.
The losers have been the taxpayers, who will now have to pay the price for this collusion. Maybe the press corps will even start reporting how this vast confidence game could happen.
Nicely said.
