[quote=briansd1][quote=aldante] Brian are you maintaining that private securitziation could have reached those insane levels with out the backstop of the GSE’s? That sounds like a “world is flat” comment given the evidence.[/quote]
I think that you need to study the details of the bubble and the collapse.
The Treasury and the Fed backstopped the banks directly, not through the GSEs.
What allowed the crazy securition was not the GSEs, but the rating agencies rating all those securities AAA.
Only after the collapse, did the GSEs take on a more prominent role in stabilizing the market.[/quote]
Here is the Secretary of HUD on the causes of the collapse on 4/4/2010.
