My memory is a bit foggy on this, but just a few weeks back either Barney Frank of Henry Reid said that the fundamentals of the economy were solid, but the psychology of the economy was weak.
“My memory is a bit foggy on this, but just a few weeks back either Barney Frank of Henry Reid said that the fundamentals of the economy were solid, but the psychology of the economy was weak.”
The psycology of the economy wouldn’t be weak if the government hadn’t tried to scam mortgage investors into financing houses for indegents under the auspices of unregulated, exotic securities that has the same ratings as treasury bonds.
If you ask me, Barney Frank, et al, have a lot more culpability in this financial system collapse than anyone realizes. I mean really, how did all those exotic mortgage securities coming out of Fannie and Freddie get AAA credit ratings? It certainly wasn’t an accident.