Bizarre to say the GSE’s are somehow at fault for what happened more than say, private sector Goldman that securitized the paper and sold the bonds, or private sector AIG that backstopped them selling insurance to speculators, or private sector Countrywide that originated the ridiculous loans in the first place.
Oooooo! Big government. Watch out. (Boo!)
Ironically, it’s just the opposite. If federal/state government and agencies had retained their historic role in regulating the financial-related industries, it would have prevented much of the speculative excess. The Fed, with responsible leadership, perhaps would have even tightened credit when the bubble had so clearly presented itself.
