Sunday, December 12th, 2010
How intelligent is anyone who thinks excessive government interference caused this economic depression?
financialallowed
You know, the one caused by unregulated financial institutions who did what unregulated industries always do in capitalism – create a crisis.
If we had not allowed banks to sell mortgages to third parties, we would never have had this depression.
They did not guarantee any bank’s loans, you silly person.
My point is, the more you regulate financial services, the less problems you’ll have.
that’s right, illegal immigrants with credit cards caused a global economic depression! Don’t forget about fluoride in the drinking water, you dingbat!
very Intelligent as it is well known that the government deregulated under Billy Cigar Smoking Clinton, and it has always been the democrat party’s position to reward incompetence
Topics: Third Mortgages |
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The problem wasn’t the basic concept of selling mortgages to third parties. Fannie Mae and Freddie Mac enabled cheap mortgages for years this way, provided the borrower was credit-worthy and had a major down payment. The problem is the unregulated packaging and selling of AAA rated securites based on subprime mortgages by private investment banks. That was a bubble waiting to happen. I hope Bernanke learns that it was never a good idea for the Federal Reserve to allow bubbles to grow and explode, then pick up the pieces. Now, maybe they will intervene earlier.
Read this from an IMF publication for a great view of what caused the subprime mortgage bubble, and how something seemingly small like that could take down the entire financial system. Nowhere does it blame the crisis on excessive government interference. That is indeed post-rational thinking.
Edit: Love the guy above me saying the people are sheep. Indeed.
http://www.imf.org/external/pubs/ft/fandd/2007/12/pdf/dodd.pdf
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I don’t think selling mortgages to third parties is really the problem; buying debt is quite common. It’s a problem when those debts are toxic such as the sub prime mortgages, creating a house of cards effect.
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My husband is in the banking industry and has many advanced degrees….HE says that IS the cause!
There were Government mandates to loan money to people who could not afford those loans. And remember the liberals at Bank of America gave CREDIT CARDS to illegal aliens.
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you are wrong – the fact is you cannot claim a free market failure when regulation was in place and driving the process.
it’s either one way or the other,a nd in this case regulation and government pressure is completely responsible.
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More intelligent than those who think it wasn’t.
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very Intelligent as it is well known that the government deregulated under Billy Cigar Smoking Clinton, and it has always been the democrat party’s position to reward incompetence
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your incomplete argument based on the facts that you like and ignoring the facts that you don’t like is about as smart as a bus load of retards.
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We see many symptoms like housing, credit, the government etc. but I think there is only one cause: globalization.
Imagine all these different industries/countries/people working separately like big separate machinery. When globalization brought everything together, including these separate parts into one big machine, the gears started girding against each other as they are moving at different speeds and directions, as we have countries at different levels of development.
What’s next? I think the machine is going to grind for a while, just like a gearbox, and will either get into gear or stall. If it stalls though, I imagine it will take a world war to restart it.
I think the solution you are proposing is workable in the short run, but in the long run it will lead to many ruling systems that will eventually need to be integrated into one.
I was watching this video:http://www.laitman.com/animation/ about cogwheels and that got me thinking, how is this all going to end.
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