There is plenty of blame to go around.
the causes are complex and some rooted in actions from many years ago
to place blame on one party is dumb
a home for everyone
level playing field (stop redlining etc)
witch doctor loans (bubba)
fnm was fdr
fre was lbj
(those agencies are really stupid. you cant have it both ways)
CDO's, cdo's squared, siv's etc.: this witch hazel MIT crap WAS very wrong and had its roots is true GREED.
The original idea was a good one. transfer risk profile. reduce concentration fo risk in these mortgage pools. like a science project gone bad, it went really bad.
These things became the black hole that made things really get out of control and spread the pain EVERYWHERE across the globe. I have tried to read about a CDO squared and get a basic understanding. i cant.
i honestly dont think anyone really had a handle on these GD things, the rating agencies step in with the AAA crap
(they dont get ENOUGH blame)
you dont hear much about it but fre and fnm getting in trouble in the early 90's (accounting crap) was HUGE in allowing the countrywides and quick loans etc to morph. They came in to fill gap that the agenncy could'nt fill.
mozilla did'nt give a crap if you could pay. the salesmen didnt care. no one had skin in game.
thus: no doc low doc ninja loans. countrywide et al sells em before ink dries.
wall street whores (us) package em (make our gizz) and sell to who the fukc knows. (the CDO guys were very close to being "bad" people"
I conclude that we as humans are really not as smart as we think we are.
NO ONE saw this crap coming.
no one connected the dots.
Al and his 400 Phd's didnt see it.
barney didnt see it.
chris cox did'nt see it.
The system and the complexity is bigger then all of us.
are there "bad people"? i dont think so.
the biggest failure in my opinion? govt. regulation.
it failed BIG time like always.
if you had skin in the game no way you would have the country wides of the world.
i think as humans we have progressed to the extent that hank and ben saved the free world on sept 19, 2008.
getting that 750 bil the way they did. Reserve fund broke the buck. libor was 6 ted spread insane. 30 day govies NEGATIVE system was melting. trust was GONE
we DID learn from mistakes of the 30's.
all this regulation bs that obama nation is putting in wont do crap.
it looks like free markets blow about ever 100 years of so. what gets us in 100 years wont be this. it will be something else that govt misses.
again bad people? nope
gabe and jimmy mean well.
help people who need help get people in homes.
bankers bad? nay just people trying to better themselves.
a perfect storm
and (so far) the free world didnt melt