Quote Originally Posted by TheDeSade View Post
All good observations on this situation. What it basically boils down to is a bunch of legislaters removed all the controls and regulations governing most of the financial operations in our economy all the while touting how the free market capitalistic system would rebulate itself and self correct as it went along. Well, greed and avarice reared its ugly head and now the system is trying to correct itself and the same bunch of politicians are working their asses off to save the financial tails of the same bunch of greed ridden individuals who were in charge of the financial system in the first place. Instead of letting the system self correct, they are going to step in again, patch it and be damned who they hurt as long as their old boy network keeps enjoying the same set of class distinct privileges.
Let's at least set the factual basis for why controls on the m.ortgage market, Fannie-Mae/Freddie-Mac in particular, were removed and not reinstated.

Not only were lending standards allowed to be relaxed, but those GSEs were required to make risky loans to high-risk borrowers in order to increase homeownership among people who really should have been renting. That executives there took advantage of the bonus structure to under those conditions isn't surprising, though still despicable.

Not all lawmakers were in on this. The Bush administration warned about lack of oversight more than a dozen times over the last several years. During Congressional hearings, many lawmakers spoke of the need for more oversight and warned of the looming potential for disaster -- others, like Cynthia Mackinnie (sic?) said they saw no problems and touted how "innovations" like 100% financing had helped so many high-risk borrowers, praising Frank Raines who made something like $90-million during his tenure.

I'm repeating myself, but it bears repeating: If you feel strongly about this issue, feel that it never should have happened and can't be allowed to happen again, then remember that there's an election coming up. One candidate warned about this problem and wanted more regulations in 2003, 2004 and 2005. The other has received the second-highest amount in contributions from the GSEs and has Frank Raines as one of is financial advisers.