Filed under: Market matters, Federal Natl Mtge (FNM), Cramer on BloggingStocks

TheStreet.com’s Jim Cramer says the latest proposal leans on private industry and the states, two groups that already failed.

“The plan, which relies primarily on state regulators and private industry to tighten their oversight of financial markets, calls on states to issue nationwide licensing standards for mortgage brokers.”

That quote, from the lead story in The New York Times, headed “White House Offers Plan to Ward off Credit Crisis,” is exactly what is wrong with every response from this government to the crisis we are in.

First, the state regulators are a joke, have been a joke and always will be a joke. We have had state regulators, some of them actually attempting to be good at their jobs, but this real estate industry is always more powerful than state government, so it is a hopeless proposition. All of the problems in this business may have started with mortgage brokers putting people into mortgages that they shouldn’t have, but that would have simply stopped had the Federal Reserve said that it didn’t see the wisdom in 2 and 28 loans. They pushed them, didn’t believe in derivative packaging, and thought that loans should be kept on the books of the banks UNLESS bought by Fannie Mae (NYSE: FNM) (Cramer’s Take).

Continue reading Cramer on BloggingStocks: Administration misses the mark again

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This entry was posted on Friday, March 14th, 2008 at 11:29 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.