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Wayne.B

On Thu, 20 Aug 2009 12:31:46 -0400, wrote:

I am not in favor with the way we have bent over for the big bankers
but I am also not brainwashed enough to believe this was all the
republican's fault. They are all doing it. When you see who buys these
politicians it shouldn't surprise you.
In fact it was the democrats who killed H.R.4161 in 2005 that would
have regulated Fannie/Freddie and would have tempered this housing
crisis. That was Dodd and Frank.

Yes, and as quasi federal agencies Fannie and Freddie should be
prohibited from all lobbying and political funding efforts.
Additionally, banks need to be limit their risks by percentage of
asset class and be totally prohibited from any kind of "off the books"
investing/financing. That's what killed Enron and it came close to
killing the entire banking system last year. You could argue that the
entire crisis was caused by too much money chasing too few credit
worthy borrowers, and that money was coming from bonds the investment
banking industry was churning out. Worst of all, they were holding
many of the bonds for their own account by borrowing cheap in
international markets and leveraging the purchase.