Per Wikipedia:
Fannie Mae and smaller Freddie Mac own or guarantee almost half of all home loans in the United States.
Their involvement in the housing crisis is very significant.
Actually the number I have is 70%. If they had 100% of the subprime loans, that would account for only 2% of the CREDIT MARKETS. The Subprime credit liquidity seizure precipitated a liquidity crisis, but accounts for 1/50th of the Credit Market debaucle. As more buisnesses cannot get credit to run their operation (salaries, raw materials, equipment) they will fall like oak leaves in November. Credit cards will cease to be allowed to be used. Auto credit will dry up ( it already is).
All caused by a willful turning of a blind eye by hedge funds, banks and other investors who wanted massive deleveraging to gamble in the stock and bond and money markets.
This bell cannot be unrung short of devine intervention.
Check out this article. It says much of what I said.