contd.
Greenspan being a free market conservative may have to take the blame with several others who did not bother to look beyond the mandates. Credit derivatives were questioned by investing people like Warren Buffet. Derivatives needed extreme controls as people and particularly the auditors were reluctant to ask these big and bullying clients to provide for reasonable bad debts. No financial service and mortgage business client wanted to accept that a huge amount of credit is extended to the sub-prime public who are not capable of paying these huge mortgages. There were politicians to blame too who liked to arm twist financial service firms to fund the mortgages to these sub prime clients.
If auditing firms would have paid due attention to such 'dirty assets' of these financial firms in time, perhaps none of us would have seen this day.
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