"these were sold under false representations and warranties -- frauds"

Including the fraud politicians put on the American people: everyone should own a house, which came in the form of artificially low interest rates, laxed lending standards, and tax credits.

Here's what I have to say to investors of mortgage-backed securities, including Fannie & Freddie: caveat emptor. The ultimate buyer was the U.S. taxpayer, because those investors knew Fannie & Freddie forays into subprime were covered, why shouldn't theirs be? It's the American Dream, right? And sure enough, they got their bailout, aptly named TARP!

We all got TARPed!