And they needed a bailout why? They underwrote a lot of bad loans. They underwrote almost all of the market in 2007. Because they backed the mortgages they recieved much higher ratings then they deserved. Bad monetary policy is a big part of what is going on right now.The facts are very clear. F&F have very specific rules and regulations on which they can buy a mortgage from the banks. 80% of the sub-prime mortgage market did not meet said rules so could not be pushed onto F&F. That is why companies like Countrywide went belly up. Had the mortgages met the lending standards enshrined in F&F, then the banks would have been able to pass off the loans to F&F, making their loan giving risk free.
No loan is risk free. Totally stupid statement. Passing it through the government doesnt make it so.
It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
"Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911
The USA has a huge debt problem and the idea that these crooks can come back to the taxpayer for more money, and actually have those who support this insanity, tells me that the decline has set in and recovery is unlikely. Only when adults are put in charge can the the United States possibly recover.
It's important to remember, btw, that subprime and Alt-A loans aren't inherently bad. They can be reasonable investments if the underwriting is done correctly and the derivatives are properly rated.
Thats kind of my point, if the government cant be blamed in forseeing something in the realm of business, they should only oversee that business as required by our system of government and let the market work with its ups and downs. The downs are gonna suck but thats to remind business what risk means. They live and learn or they dont live as an ongoing business.
Government is supposed to be the ref, not one of the teams on the field.