If in fact, accepted good accounting practices were not practiced by FM and FM, then the officers of those companies need to have a federally sponsored room with "Bubba" as a roommate.  While those in congress who defend them call for affordable housing, to all who wish, what they fail to recognize is that to put anyone in a house they cannot afford or take care of, is just wrong and helps noone.

The lending practices clearly promoted a "Ponzi" scheme where bad loans were sold off - and the ultimate holder was to be FM & FM.  and the house of cards finally came tumbling down.

Pressure by specific and identifiable members of Congress to grant loans and relax or eliminate barriers to UNQUALIFIED loan applicants is also to blame.  They knew it was wrong!  or they are as stupid as a piece of wood.  Sadly, their constituents will cry "foul" or "no fair" - why does he get to have a house - while I can't...

What is failed here is an understanding of financial instruments, how they work, and how the real estate market works...  in explaining this mess to my kids, I asked "how do you determine the value of a house"  - My son responded that you add up the cost of all the parts within the house... and the labor... my response... nope... not how it is done... it is STRICTLY what someone is willing and able to pay for it.  that is the primarty determinant of what a house is worth.  And that only truly gets tested when you sell or refinance a house... and therein is the problem... folks who pushed relaxing the lending regs... did so on the predicate that housing values would ONLY go up... Great theory - but guess what - only a theory and certainly one not well supported by historical facts....

lmfao.......