Ex-Freddie-Mac-Now-Cato-Economist Arnold Kling claims (in this interview: http://bloggingheads.tv/diavlogs/14744 http://bloggingheads.tv/diavlogs/14744) that Fa

Ex-Freddie-Mac-Now-Cato-Economist Arnold Kling claims (in this interview: http://bloggingheads.tv/diavlogs/14744 http://bloggingheads.tv/diavlogs/14744) that Fannie basically had to lower their requirements in order to meet the HUD requirements mentioned at the end of this article. So a well-intentioned but unaccountable leader makes a decision with unintended consequences, but because that decision reverberates through the market power of enormous governmental structures, it leaves a much larger mark than would be otherwise possible or likely.