SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : View from the Center and Left
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bread Upon The Water who wrote (229048)8/9/2013 12:23:40 PM
From: JohnM  Read Replies (2) of 542946
 
I understand that there is a liberal line of argument that exculpates liberal sponsored legislation for this mess (just like their is a conservative line of argument that blames this legislation), but the key point for me is whether or not Fannie or Freddie was under some mandated requirement to participate in the subprime market.

I've been reading this conversation and I think I see the conversation you want to have. But I think there are at least three more elements to it that you've left out. The first is that the mortgage regulatory process had broken down. It's my impression that the most damage was done to it during the GWB administration in that the combination of a general anti-regulatory mentality among the political players in that administration and the ability of the industry to manipulate the regulators pretty much undercut all active regulation.

The second element was the mortgage writing industry--banks, whatevers--who simply wrote, massively, mortgages with none of the usual safeguards.

And third the notion that bundling the unsafe mortgages into investment units would spread risk sufficiently to protect investors. Unless a serious real estate crash occurred. Affecting everyone. Which is precisely what happened.

But the key for me is the failure of the regulatory process. And that, at least my reading at the moment, is largely the fault of the GWB administration.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News