Posted on 04/07/2010 4:34:52 PM PDT by NormsRevenge
The blame isn’t as widespread as it superficially seems. The people responsible are trying to point at the ones downstream for repackaging bad loans, but the culprits were those that encouraged, mandated and wrote the bad loans. Together with those who wroted laws setting up Freddie and Fannie, putting the US taxpayer on the hook.
I'm sure he came up with that description while in bed with Andrea.
Now I have to scrub my brain with a wire brush and bleach...
5.56mm
So true. The derivative market was the bottom line that gave the government enterprises the capability to sell off the bad loans. It’s really a funny kind of Ponzi scheme. They put blinders on the watchdogs and then went into business selling bad paper. All it took was a breathing bag of skin that could successfully sign a loan application. If dogs and cats could have signed the loans they would have done that too. If they could transfer those bad loans somewhere they could not have screwed us. But they had that covered. They made a law preventing any government agency from monitoring that market. That was a Clinton administration & congress that did that. Remember how home ownership was the big achievement? You have to love our government when it does what it does the best. It took suckers to take out the loans and lending institutions like the two government enterprises to create this freight train disaster.
Greenspan is just a convenient scapegoat here. The real cause of the collapse was Congress, in particular the democrats and little corrupt fascists like Barney Frank and Christopher Dodd.
ANDREW CUOMO AND FREDDIE AND FANNIE
‘How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis’
By Wayne Barrett (8-5-08)
There are as many starting points for the mortgage meltdown as there are fears about how far it has yet to go, but one decisive point of departure is the final years of the Clinton administration, when a kid from Queens without any real banking or real-estate experience was the only man in Washington with the power to regulate the giants of home finance, the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), better known as Fannie Mae and Freddie Mac. . .
But do they ever blame themselves? The financial press?
Never. They never do their duty when it counts.
The press spends too much time protecting their pols, instead of the public.
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