Thursday, September 03, 2009


McStupid: Mortgage Banker's Association

I thought I had seen it all when it comes to dumb. I was wrong... This is idiotic. Let's count the ways:

* A "strong regulator" eh? You mean like the FHFA? Fannie and Freddie had a so-called "strong regulator" that nonetheless allowed them to lever up at 80:1 (or 200:1 depending on how you looked at their books) which was clearly outrageous on its face and led to their demise.
* That same "strong regulatory framework" had Fannie and Freddie buying other-than-actual-prime paper. It detonated. Any questions?
* Fannie and Freddie turned into revolving-door agencies with the government, winding up as political tools on both sides of the aisle...

Ticker: McStupid: Mortgage Banker's Association

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