<p>Medwell, the housing bubble of this decade was funded by private banks. Fannie and Freddie played at most a minor role, and that role diminished as the bubble got bigger. Sub-prime lenders, aided and abetted by market speculators, caused the bulk of the price inflation.</p>
<p>[Private</a> sector loans, not Fannie or Freddie, triggered crisis | McClatchy](<a href=“http://www.mcclatchydc.com/2008/10/12/53802/private-sector-loans-not-fannie.html#ixzz12xTyWY91A]Private”>http://www.mcclatchydc.com/2008/10/12/53802/private-sector-loans-not-fannie.html#ixzz12xTyWY91A)</p>