Well it seems former Fed Chairman Alan Greenspan is saying he saw the housing bubble, except that he wasn't able to stop it. If his inability to fess up to his own complicity in the financial meltdown wasn't bad enough, now he wants to blame Fannie & Freddie (GSEs). As Barry Ritholz wrote back in 2008:
- 50% of subprime loans were made
by mortgage service companies not subject comprehensive federal
supervision; another 30% were made by banks or thrifts which are not
subject to routine
supervision or examinations. How was this caused by either CRA or
- What about "No Money Down"
Mortgages (0% down
payments) ? Were they
required by the CRA? Fannie? Freddie?
- Did the GSEs require banks to
not check credit scores? Assets? Income?
- What was it about the CRA or
GSEs that mandated fund
managers load up on an investment product that was hard to value,
thinly traded, and poorly understood
I expect that there will be more attempts by conservatives to blame government laws & regulation for causing the crisis and ignore the fact that a lack of government financial regulation caused the crisis.