The monied interests on Wall Street and other professional highways and byways are, with a good deal of justification, primarily concerned about risk. Many in society may wish these financial wizards considered risk before the fall.
So has the pendulum recoiled too far to restraint?
Asked another way: Are the big boys missing out on opportunities with their current ultra-reserved investment philosophy? (A cynic might suggest that these barons of capital do not really have a philosophy, but more of a herd mentality. Maybe they are not quite as sage as some believe).
Right now, and for the foreseeable future, unless a lending institution portfolios a loan, one can only get mortgage debt from Freddie Mac, Fannie Mae, and the other GSEs (Government Sponsored Entities). These loans are plain vanilla in form with strict underwriting guidelines and stiff credit requirements.
