I wouldn’t characterize Hank Paulson as a government regulator. He was transferred over from Goldman Sachs, and was used to convince the ignorant masses that “the world would end” if we didn’t bail out his wealthy banking buddies.
Fannie and Freddie were NOT the cause of the bubble. They were used *after the fact* to bail out the PRIVATE lenders by refinancing all the bad loans on the private balance sheet into government-backed loans.
The problem is corruption, not the size of the government.
