Fannie’s follies, Freddie’s foibles
Thursday, March 13th, 2008In my post, After Greed comes Fear, I excoriated the role of the unregulated market in the current sub-prime mess we’re in. Quasibill cried foul, pointing out quite rightly that the whole concept of mortgage-backed securities started off with Fannie Mae, Freddie Mac and all the rest of those cutely acronym-portmanteau-ed government-sponsored enterprises. To quote ‘Bill directly, “to lay this turd at the feet of “unregulated markets” has the causation entirely backwards.”
My response? I both agree with ‘Bill, and I stand by my post. It is possible for there to be both simultaneously too much government influence AND too little regulation. Read on… (more…)