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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Brumar89 who wrote (424444)	10/10/2008 9:27:02 AM
From: Road Walker	Read Replies (3) \| Respond to of 1578704

re: Summing up, the mortgage mess wasn't a result of no government oversight and regulation, a failure of the free unregulated market. It was a result of bad regulation and political oversight. The overseers and regulators were hands on pushing for more risk, not fiscal prudence. I'm not denying that government didn't have a hand in lowering the quality of loans. But the real toxic stuff happened starting in 2005; before that FME's portfolio was pretty solid. Yes they were pressured by Congress and the WH, but as or more important they were pressured by share holders and customers to compete with the investment banks (read "masters of the universe") who were jumping into the housing bubble buying and selling really crappy loans and making tons of money doing it. Freddy/Fannie didn't cause this crisis, but they did exaserbate it. They lowered their standards in response to the marketplace... remember they are not originators, their only decision was what paper they would buy (and sell). They lowered their buying standards to reflect competition with the unregulated investment banks. And the investment banks were bundling garbage and selling it with unsecured "insurance" (worthless credit default swaps) that were also unregulated. re: So thanks for posting an article that continues to support my argument. I realize you want to ignore the parts I highlighted above but this is part of the record and pretending it isn't is just wrong. I'm not pretending anything. Notice I didn't highlight anything... let the reader judge the entirety of the situation. I'm confident an unbiased person will come to the same conclusion as I have.