"It was the banks, insurance companies, and wall street, more than anyone, who were the criminals."
The government insisted banks make unprofitable loans. Complying with the law and facing projected losses on these loans the banks bundle them with better quality loans. Once that little trick was in place the flood gates opened and everybody got into the act, rating agencies, politicians, on and on. It's more complicated than that, of course, and I'm sure books will be written.
Another unintended consequences situation that ended up achieving the exact opposite of the stated goal (more people owning homes and prospering as a result). Everybody was complicit, many people were criminal, nobody has been charged with anything, not by this pres or the pres before him. Do-gooder government was the prime mover in this, and then the government made another contribution to the whole scam by not enforcing the regulations. That's why nobody is being charged with anything, if that were to start it would include the politicians so the politicians decline to pursue the matter.
Government is stupid, too stupid to control or predict the cause and effect chain reactions it sets off. What little good it does seems to be mostly by accident and usually at the huge cost of some other great evil somewhere else in the system. Again oversimplifying, but not by much.
End of rant.
ARS |
