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Politics : Mainstream Politics and Economics
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To: Thehammer who wrote (7523)1/26/2012 12:07:58 PM
From: Jorj X Mckie3 Recommendations  Read Replies (2) of 85487
 
The we had FNMa and his idiot sister buying up all these "toxic" loans.

And so then we have to ask why fannie and freddie would buy up the "toxic" loans. Could it be because there was pressure from the big boys and girls in D.C.?

And if one is going to take on toxic loans, wouldn't it be insane to not try and hedge the bet? People talk about the credit default swaps as if they were the cause of the whole mess. But they are an obvious outgrowth of a situation where a financial institution is forced to extend unreasonably risky loans.

This is a classic case where the "good intentions" of the government in trying to make everyone a happy homeowner had so many unintended consequences that it is surprising that it didn't turn out much worse.
Once again, D.C. ain't the solution, it's the problem.
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