Little story about Freddi Mac and Fannie Mae

Ever have one of those rough mornings? Didn't sleep well, weather is changing a bit. Cloudy this morning. Slight pressure headache. Slight sore throat. Wake up still feeling tired and drained (and no I didn't drink last night.) Just the start of the fall season I guess.

I find it hard to stay very focused on anything.
Well at least we can all enjoy the news.

Speaking of the news, I do have one questions/thought about Freddi Mac and Fannie Mae. If they bought mortgages from banks and packaged them as securities which were bought by foreign governments and foreign investors, and it is individual home "owners" who defaulted on their loans, where did the company make a mistake?

I think Freddie and Fannie are like a young Simba in the Lion King. Simba didn't know his uncle was an evil, murderous jerk. He trusted him and listened to him. What did it get him? Blamed for his father's death and self-exile for years.

As for Fred and Fan, doesn't the problem go back to:

1) the individuals who took out loans should take a little responsibility for themselves and their own decision to take out a loan for more than they could afford (yes, yes, I know some lost jobs etc al. But you don't get 1 trillion in housing debt from a 6% unemployment rate. You may have too many real estate speculators, but not honest home owners, in my opinion.) Something else is going on.

Back to the Lion King... Scar's decision to allow the hyenas to hunt in the same lands as the pride's devastated the savanna. Scar's partnership with the hyenas was a bad fiscal policy inreguards to food resources. When the USG let the hyenas hunt in the real estate market ... we end up with a savanna real estate wasteland.

2) and doesn't responsibility fall on the banks which made the loans in the first place? Many of which who couldn't or didn't sell their loans fast enough to the very same Fred and Fan? (Scar blames all his problems on Simba. But, when Simba finally stands up and slayes his evil uncle, he restores balance to the force and the balance sheet, by first kicking out all the hyenas and second taking responsibility himself.)

Just who is getting bailed out? Real estate hyenas and Bankers (Scar) or average home owners who fell on bad times (all the other animals in the Lion King world)? Or are we supporting foreign markets and encouraging them to buy more American debt?

Isn't it Ironic that Fannie Mae was created during the great depression (1938) to help the nation recover? Got privatized in 1968. 40 years after that, it is now on the verge of creating another one. Just makes me think that the Lion King is the greatest movie of all time. That whole circle of life thing. Who knew we could learn so much about world finance from a cartoon lion?
Have a great day.
Bryan