Spin away... <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/_MGT_cSi7Rs&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.youtube.com/v/_MGT_cSi7Rs&hl=en&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object>
Now wait a second. I thought there wasn't any regulation? Yet Barney Frank, among other Dems in this video, reject the concerns of the regulators and basically acuse them of lying. I must have missed this on Katie Couric's news show?
It's no secret that the GSEs were largely playthings of the Democratic Party. However, when they were staying within their bounds, the GOP didn't really see the need to control their growth. It was BEFORE the GSEs got into all these ancillary businesses that their wings should have been clipped. All it would have taken was to say that the implied government backing applied to the securitization of conforming mortgages. Anything else, and they were on their own. It would have forestalled this entire mess.
This video reminded me of a point about oversight. I keep hearing about how many of these firms weren't properly regulated. Regulation requires oversight. When you have politicians playing this game of go-along-to-get-along, you can regulate all you want, but it won't make a damn bit of difference. These Representatives were intent on looking the other way, regardless of how much evidence was placed in front of them. I'm reminded of the accounting crisis of 99/00 when the managing partner of Arthur Andersen was asked by a Congressman, "Who will oversee you?" The MP answered, "We don't require oversight; we're licensed and regulated." Regulation isn't the problem.
