GOPwinger Lies/Distortions/Omissions/Perversions of Truth Message Board

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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth

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To: geode00 who wrote (146967)	11/12/2008 7:24:11 PM
From: TimF	Read Replies (1) of 173976

There has been no lack of regulation. We've had regulation in spades, and ever growing every expanding amount of regulation. And regulation, doesn't imply "safety" or even necessarily greater safety". Regulation can actively make things worse. Sometimes just by increasing costs, sometimes by mandating risky activity, or by selectively rewarding riskier activity (for example requiring lower reserve requirements for sliced up and securitized loans than for actually holding a loan). Both parties where all about expanding home ownership, and both parties, going back decades, created policies that helped feed the bubble. This includes Bush (who's administration lowered some reserve requirements for certain institutions and therefore helped increase leverage), but it also includes actions of presidents, congresses, and regulators well before Bush came in to office. Would the bubble have happened if it wasn't for all the perverse incentives and pressure from government? Perhaps. Bubbles can happen without government help. But if it did happen, it wouldn't have been as big.

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