fannie mae and freddie mac in strife, page-50

yes meerkat they're paid millions...so how could they stuff it up?? problem is that in a deregulated business, conservative directors are sacked if they don't chase "opportunities" no matter how risky. Their competitors are "going for it" so the shareholders expect their directors to maximise returns. The US banking industry is not naturally/traditionally conservative like their Oz counterparts.

So I don't think it's a case of bank CEOs being stupid--it's just that there is no reward for being conservative and cautious--until the crap hits the fan of course but by then its too late.

As for the comment that this is the unravelling of the US system--hah, sounds like wishful thinking from the closet marxists on HC. Dream on...if the US system could survive the Great Depression it can survive anything.