Re: Moral Bankruptcy: Why are we letting Wall Street off so easy?

On 1/18/2010 4:35 PM, pyjamarama wrote:
> On Jan 18, 1:23 pm, smor…@board.net wrote:
>> On Mon, 18 Jan 2010 14:11:42 -0500, Beam Me Up Scotty
>>
>> wrote:
>>>> Congress was republican
>>
>>> Yes, yes it was….
>>
>>> And it was Clinton that enforced laws in a way that coerced banks to
>>> make bad loans.
>>
>>> It was Clinton that had Franklin Reins appointed to Fanny Mae and
>>> Democrats that pushed for Fannie to buy loans with lower credit
>>> requirements.
>>
>> but only to qualified buyers

Qualified to the new lower Qualifications….

If you make the qualification be that they are breathing, you can use
those same slimy claims and it is still the risky loans that caused the
problems and when it starts that money was leveraged as the loans were
combined into investments and spread the failure beyond Fannie and
Freddie because they bought and passed those loans on.

Without Fannie and Freddie buying and selling risky loans the banks
would have been less willing to make and hold those bad loans and the
Banks making them would have been the extent of the failure.

Fannie and Freddie were like Typhoid Mary, spreading the death all
around and then when the s&*$?%t hit the fan more than those banks and
Fanny and Freddie went down the toilet.