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To: Israel who wrote (219274)	2/6/2003 2:17:31 PM
From: stomper	Respond to of 436258

Yep, and it's one of those lynchpin items of which the general public will take NO notice...way too esoteric to mean anything to J6P. -dave

To: Israel who wrote (219274)	2/6/2003 2:38:51 PM
From: reaper	Respond to of 436258

Israel, seriously, i think you have this thing backwards. Falcon is a total pussycat and is in Raines' back pocket. He has done shit in the 3 years he has held his office to reign in the irresponsible behavior of the GSEs and is a frequent reciter of the bullshit lines like "the low interest rates and implicit govenment guarantees that the GSEs enjoy are good for minority borrowers" et al Brickell, on the other hand, is a (i) free marketer; and (ii) actually knows something about the derviatives market. the Bush admin philisophically sides with the WSJ and other Fannie/Freddie critics that Fannie/Freddie (i) enjoy an unfair competitive advantage vis-a-vis the banks and others who might play in the market; and (ii) that the concentration of so much power in the hands of two companies, implicitly backed by the US gov't, could be a disaster. as 'free marketers' they wish to remove the implicit guarantee, which of course is very hard to do because any time anybody tries to do it Raines comes on and talks about how higher rates will be bad for African Americans who deserve to own their own home (who can argue with that logic <g>). Brickell is a guy who will work to actually oversee the GSEs and dilute their market influence. as far as the 'systemic risk' study, that is an obvious CYA move by Falcon. as noted, the guy is a farking pussycat when it comes to 'monitoring' the GSEs. he's known he's on the way out for months. so he commissions a 'report' to make it look like he was actually doing his job, so when the GSE's blow up he can say 'look, I told you this was gonna happen' even though it is he who has fostered the environment in which the risk was born. the Bushies are on your side on this issue. that said, as noted in my prior post, they also know they can't just walk in and pull the implicit guarantee, as that would crater the markets. Cheers