Hypocritical?

[Goalpost]

(12-14-2020, 01:35 PM)fredtoast Wrote: The reason we had to spend billions of taxpayer dollars to bail out investment bankers after the housing bubble burst (SOIALISM!!!) was the lack of regulation on credit default swaps.  They were basically insurance, but firms like Lehman Brothers were allowed to sale them with out enough capital to back them up.  When they could not pay to cover the losses the result would have been the collapse of major corporate 401K funds as well as private IRAs all across the country.  So to keep honest small investors from losing all of their retirement savings the government bailed out Wall Street

My understanding of why institutions were selling these loans amidst themselves was because Fannie and Freddie was in on this also providing leadership and providing security in it. Turns out Fannie and Freddie were a house of cards also.