I'm also dubious about how Fannie and Freddie failed. There was a bubble (caused by what, low rates? guarantees? demographics? the credit bubble?), and it defla

I'm also dubious about how Fannie and Freddie failed. There was a bubble (caused by what, low rates? guarantees? demographics? the credit bubble?), and it deflated. But the US government is not the only entity to screw up in this way. The UK housing bubble also burst. Japan had the same problem. And while the government was certainly involved, so was private industry and the general public. It doesn't prove "government = bad", that's just confirmation bias. What it does prove is that you (the government, industry, or general population) shouldn't pour too much money into areas that show all the signs of a credit bubble.