FBI investigating 26 firms

[Luke]

I don't know what good it will do, however CNN is reporting that the FBI is investigating Freddi, Fannie, AIG and Lehman Bros to for mortgage fraud. A CNN report claims that Freddie and Fanni have been "cooking" books since the Savings and Loan trouble in the 80"s. This could be big as they are claiming that many senators/congressman have recieved MAJOR campain contributions.

I myself have some unwanted debts, never draw to an inside strait. I wonder if that would qualify for government bailout?

[Malsua]

This whole mess was started because of the CRA. What really got the ball rolling was a requirement that race be included in the applications circa 1989. After 2 years, it was shown, Minorities got fewer loans...so it must be racism. This ultimately fell out with "no doc" liar loans. These loans were packaged up, sold off and landed in Fannie or Freddie. The investment banks then started selling derivatives backed by these shoddy loans...once the loans default en masse, the banks fail. See Lehman. Of course, the people who ginned up the whole works walked away with millions...the US taxpayer is going to end up with the bill. It's BULLSHIT!