Some of you Republican loyals really need to take a course on the rules of evidence or how to understand the difference between a substanted charge and one which is is nothing more than an assetion without any evidence to support it
Fannie Me and Freddy Mac are NOT the originators of bank loans. They are the
secondary market for loans that were written by some other banks or financing corporation.
Do you
understand that?
To the extent that Freddie and Fannie have responsibility in this fiasco, it was their willingness to create and then accept of "conforming" mortgages (NINA VARS) that were wildly speculative and ill advised. But they were motivated to do so because the return on those was VERY high, too. Nobody put a GUN to those organziations heads to MAKE them do this, folks.
They then assumed these NINA VAR mortgages from banks and then bundled those mortgages into bonds.
They bought 25% of all the bad paper, and other (ALSO) private banks bought the other 75% of this crappy paper.
Now, the real problem is that they (and the other private banks) ALSO were responsible for pressuring the r
ating agencies to understate the REAL risks asociated with these NINA backed bonds.
So...included the list of organizations responsible for this mess we have:
1.
The people tooo damned
stupid to understand they couldnt' afford those mortgage payments when their adjustable mortgages when upm, and the gamers (real estate
flippers, in other words) of this system who KNEW they'd walk from the properties if the market changed; AND
2.. The
private banks which happily
originated these mortgages, knowing full welll they weren't keeping those in their own portfolios; AND
3. The
private banks (including Fannie and Freddie) which bundled those mortages to sell them as Bonds and
who ALSO
pressured the RATING AGENCIES TO LIE about the inhernet risk assoicated with them should the real estate market bubble burst; AND
4.
The Bond purchasers who ALSO knew (or
who SHOULD HAVE KNOWN) that those bonds were predicated on the risks associated with that bubble, but who were motivated (by higher interest rates promised for those bonds) to buy them ANYWAY.
So what we have here is a collosal SNAFU of professional investors and bankers, ALL of whom should have known better, and a group of homebuyers who ALSO should have known better, ALL OF THEM working separately but in toxic synergy to completely screw the market all to hell.
Is the leadership of the Democratic party ALSO responsible in that they asked Fannie and Freddie to loosen up their mortage requirements?
You bet!
How about the leadership of the Republican party which ALSO knew the disaster was unfolding and who DID control Congress at the time and who could have effected the out? Are they responsible for this mess ?
Yes, they're EQUALLY culpable.
I'm sorry that you partisans are so blinded by your own assinine prejudices that you can't see this for what it really is.
But wishing, as most of you are, that you can lay the blame for this disaster on one party (or one race of people) or just the home-purchasers who were damned fools, or those who were gaming the system, is...how can I say this without being offensive?
fucking ignorant.
Face it folks, the MASTERS OF OUR UNIVERSE have screwed up royally this time, just as they did during the saving and loan disaster, just as they did in 1929, too.
GREED, which is what motivated most of these folks created this tragedy of the commons.
GREED is typically the root cause of most of these kinds of disasters to the commonweal.
