[quote=markmax33]
Fine explain the simple theory that they set the tone for the market by buying risky assets that weren’t subprime and started a trend. They certainly perpetuated the idea that mortgages could be sold in bundles to them in a faulty manner and gave the market confidence in the MBS model. They ABSOLUTELY STARTED THE TREND whether they actually bought subprime or not. [/quote]
You know markmax, you’re very right on one part here. They certainly were the first to issue mortgage backed securities. From well before this most recent bubble/bust. And before the bubble/bust of the early 90’s. And before the bubble/bust of around 1980. And before the little bubble/bust of the mid-70’s. Ginnie Mae started issuing mortgage backed securities in 1968. Freddie Mac in 1971. They did it for more than 30 years before this most recent bubble/bust. But Wall Street? They just got involved after November of 1999. Took em a few years to get ramped up, but when they did, all hell broke loose.
