Snow Urges Congress To Shut the Barn Doors

Now that the horses have all escaped....
Snow Urges Congress To Shut the Barn Doors.

Treasury Secretary John Snow urged Congress to restrain Fannie Mae and Freddie Mac, giving the Bush administration's blessing to efforts to create a new regulator with broad power over the huge mortgage companies.

Snow's remarks came a day after Federal Reserve Chairman Alan Greenspan, appearing before the same Senate panel, called for Congress to limit the combined $1.5 trillion portfolios of the government-sponsored companies.

The recent troubles at Fannie Mae and Freddie Mac "reinforce concerns over the systemic risks posed" by the companies, Snow said. He said the problems further highlight the need for a new regulatory regime "to ensure that our housing finance system remains a strong and vibrant source of funding" for home buyers.
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Let's see if I have my history straight. As I see it, Greenspan slashed rates to 1% which fueled the biggest international housing bubble in history. The cosponsor of this bubble was FNM who was willing to lend money at 0% down to anyone that could breathe. Now that rates are back near neutral at 2.75% and housing is showing signs of stalling on its own accord, Greenspan and Snow are both arguing to Congress to shut the barn doors on FNM. Is that sequence of events correct or am I missing something?

Perhaps there is a better analogy
Here are some other choices

This action by Greenspan and Snow is more like:

1) Shutting the barn doors after the horses have escaped
2) Hiking rates in 2000 to slow the economy just as the Naz was about to crash on its own accord anyway
3) The fat lady singing
4) Yelling "Fire" after your house has already burnt down to ashes
5) Alerting Asia that the US had accurately forecast a Tsunami three days after the waves hit shore

If anyone has a strong preference for one of the above, please Email me with your logic.

Mish