Fat Chance!!

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So, the poor, hapless bastards at Fannie and Freddie were duped into buying billions of dollars of mispriced RMBS by the wiley bankers of Wall Street.  Or so the government’s Federal Housing Finance Agency would have you believe as it sues 17 large Wall Street and British banks for 200 Billion dollars of RMBS losses.  PUH-LEEZ!  The guys at Fannie and Freddie were pro’s at this stuff, and even had a thriving direct relationship with Angelo Mozillo’s Countrywide – the biggest unpunished criminal of the bunch!  Just read Reckless Endangerment, by Morgenson and Rosner.  From that source, Wall Street got the idea for much of this crap from Fannie and Freddie!

I don’t even have a law degree, but I’m certain I could defend the banks against this charge.  Not that the banks are in any way innocent here, but the government’s case requires proof that the analysts at Fannie and Freddie scrutinizing these purchases were not sophisticated enough investors in this area to understand the risks they were underwriting by buying these securities.  There is no way in hell that is true!  The fact is, they were making loads of cash doing this exact type of business and lost sight of the risks, plain and simple!

This case is doomed from the start, and, if you ask me, is nothing more than election year politics.  I’m just waiting for Yobama to bring it up in a speech…

On semi-related note, a post on Zero Hedge seems to imply that Greek default is imminent.  Again, fat chance – at least according to the market!  I will repeat what I mentioned in the comments of the last post regarding this matter: