Fannie Mae-No Politics (FNMA)

[Cubshawk]

YanksGhost ---

The problem is that a lot of credible data exists that many in government had grave concerns about the GSEs, well prior to September, 2008. Many of those same people have the same view today: the GSEs need to be phased out and replaced with a new model. I'm not agreeing with their viewpoint, just stating my opinion that pursuit of the assertion that no bailout was ever needed is a wasted argument and a false hope for any beneficial court decision. The NWS is the Achilles heel.

The issue with the GSE's is they are the candy store and the TBTF banks are the kids runnning wild. Without proper oversight the kids will abuse their access to the candy store.

So the theoretical question is: Are the kids (TBTF banks) to blame? Or is it the store owner(GSE's) and parents (government) to blame for the bad behavior of the kids? Some blame the store - some blame the kids. But in my mind the real problem is the government's actions or lack thereof. The system will work fine if properly regulated. It seems the gov tried to hard to energize the kids with candy during the 90's and 00's - and the rest of us paid the price for it.