Chicken or egg? Where were the bundled junk bonds/mortgages come from? Fanny and Freddie wrapped their junk with their good mortgages and sold them.
People were making 70 million Freddy which had quotas for mortgages and allowed to throw underwriting out the window due to the Farm Act.
So I have a few issues here -
1. Limited Fed. G'ment - means NO Freedy / Fanny, and NO bank is too large to fail 2. Banks repackaging garbage as bonds - Buyer be ware - Let the FREE Market work