Even the New York Times got it right!
Even the New York Times, that bastion of the left, got the idea that subprime loans could be a problem. In this article from 1999 the Times reports on the potential problems with Fannie and Freddie reducing the standards on loan packages that they would by. Quoting the times article:
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and load industry in the 1980’s
Who knew that Franklin Raines would go on to cook the books at Fannie Mae in order to get a huge bonus then, after a civil fine, go on to be a senior economic adviser to Obama. Not to mention spreading lots of Fannie Mae money around to the Congress and the Senate!