[M-cubed]

The derivative market was the bottom line that gave the government enterprises the capability to sell off the bad loans after they purchased them from the banks. <<<

Bingo!..the banks would have never made those bad loans but for the fact Fannie and Freddie would take them off their hands....once that was made clear, the banks had a field day making “bad loans” and pocketing the fees before passing them along....No risk for the banks!

Remember the “redlining” threat banks were held hostage with??.... Congress solved that!...Dumb a$$es!

[dangthis]

I’m hearing rumors that Barney Frank is positioning himself for a private sector banking job. Perfect timing. It will probably be a bank that has already paid back the TARP money forced on them.