Comments on: Where’s the Reform on Fannie Mae, Freddie Mac? http://ecreditdaily.com/2010/02/reform-fannie-mae-freddie-mac/ Sun, 20 May 2012 21:49:40 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Leila Gray http://ecreditdaily.com/2010/02/reform-fannie-mae-freddie-mac/comment-page-1/#comment-847 Leila Gray Tue, 09 Feb 2010 13:13:51 +0000 http://ecreditdaily.com/?p=1758#comment-847 What is so clear to us all now escaped the grasp of so many brilliant, well-intentioned policy makers, senators, congressmen, private citizen, and, indeed, the all-seeing eye of the capital markets: That when you arm men with the sacred tools of public finance, men, who by their nature and by, ironically, dint of market discipline itself, will seek to maximize personal power and wealth, then, you will have created machineries of greed protected forever more by the cloak of legitimacy of public purpose. These machines were Fannie Mae and Freddie Mac. Within their worlds, trust that the highest ranking managers within both organizations continue to be impervious to the rest of the world's reality. They cannot be reformed, for they are not mere things, they are people, people who have been entrenched in well-rewarded laziness for decades. It was the supreme form of laziness to operationalize sub-prime loan production en masse. It would, by far, been harder and required actual 'work', research, and experimentation to conceive of new products, financial and operational innovations to promote affordable housing and home ownership legitimately. What is so clear to us all now escaped the grasp of so many brilliant, well-intentioned policy makers, senators, congressmen, private citizen, and, indeed, the all-seeing eye of the capital markets: That when you arm men with the sacred tools of public finance, men, who by their nature and by, ironically, dint of market discipline itself, will seek to maximize personal power and wealth, then, you will have created machineries of greed protected forever more by the cloak of legitimacy of public purpose. These machines were Fannie Mae and Freddie Mac.

Within their worlds, trust that the highest ranking managers within both organizations continue to be impervious to the rest of the world’s reality. They cannot be reformed, for they are not mere things, they are people, people who have been entrenched in well-rewarded laziness for decades. It was the supreme form of laziness to operationalize sub-prime loan production en masse. It would, by far, been harder and required actual ‘work’, research, and experimentation to conceive of new products, financial and operational innovations to promote affordable housing and home ownership legitimately.

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