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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (360962)12/1/2007 3:16:08 PM
From: tejek  Read Replies (2) of 1575424
 
Ted the Bush administration may be pro-business, but that isn't the same as free market.

Well it is when it comes to business operations. Businesses knew they were under much less scrutiny and took advantage of it.

Some regulators privately concede that the piggybacking schemes are exploiting a loophole in the federal Equal Credit Opportunity Act.

If they are supposedly exploiting a loophole in the law, than they are doing something legal.

The 'loophole' is the same as your dentist telling you to brush after every meal but if you don't, he won't be there with the police to arrest you.

Anyone who knows the business....knows that it was more than exploit the loophole; they used shoddy business practicesm cut corners, gave loans to people who couldn't handle them. That's why many people don't want the feds to bail out the companies that were responsible for the shoddy practices. They deserve to go under. However, the recipients of those loans don't deserve the same treatment.

There is no basis for a government crack down. In this case the justification for closing the "loophole" and convicting people who partake in this activity is rather weak, because it isn't actual credit fraud. No one is misrepresenting themselves or their income and no one is using a card without authorization. The real loophole that is being exploited in not a loophole in the law but a loophole in the way credit scores are calculated. And that loophole is closing.

Its more than that......it violate the normal rules of good business. You don't put people into a mortgage who can barely meet the initial mortgage payments and hope their salaries go up enough to meet the reset payments two years down the road. You don't put people with poor credit scores in houses without money down.

The boom was running out.....the goose that laid the golden egg was tired. Instead of being happy with all the money they had made for years, greed made them want more. Hence, the subprime debacle came to life. And greed is the achilles heel of the capitalist system and why we need something better.
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