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I think when you compare "often in" with 'but also in" most people would assume the first is far more prevalent than the second. Regulatory capture is often an
by onemoreact 15y ago
I think when you compare "often in" with 'but also in" most people would assume the first is far more prevalent than the second. Regulatory capture is often an issue, but dispute being blamed for the instability Freddy and Fanny lost far less money than other banks relative to their size. Which suggests that they where not major players in the most toxic assets. So, while I have no problem suggesting they in some small way contributed to the mess that just happened I take issue with people suggesting they are the major causes of the collapse.
- yummyfajitas 15y agoHuh? The government made a profit on most of the bank bailouts. The main exceptions are AIG (lost $6B) and GM (maybe $5B, but I don't understand the GM bailout so well). The losses on Fannie/Freddie are estimated to be in the range of $100-200B, depending on what house prices do. http://online.wsj.com/article/SB10001424052970203687504577001653467422674.html http://online.wsj.com/article/SB1000142405297020368750457700... If Fannie/Freddie lost less money relative to their size (citation?), it's only because the denominator is so large.
- onemoreact 15y agoYour confusing the size of the bailouts with the size of their losses.