More Wall Street Insight

Found this little tidbit interesting:

Alan Greenspan stated it most eloquently (2004):

“If Fannie and Freddie Mac continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing systemic risk down the road... We are placing the total financial system of the future at a substantial risk.''

Surprisingly, in 2005 the Senate Banking Committee actually listened, passing a reform bill that would have created a “world class regulator” that would have required the Bobbsey Twins to eliminate many of their investments in risky assets. Unfortunately, our pandering politicians decided to “party on,” and never even allowed the bill to come up for a vote. The rest, as they say, is history.