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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (37477)	1/10/2013 8:17:29 AM
From: Little Joe	3 Recommendations Read Replies (1) \| Respond to of 85487

You left out the most important problem. The government was, not just encouraging, but literally forcing banks to engage in bad lending practices. What is often overloooked (without excusing the banks) is that the banks were following government policy. lj

To: Broken_Clock who wrote (37477)	1/10/2013 11:49:06 AM
From: grusum	1 Recommendation Read Replies (2) \| Respond to of 85487

prime causes were the repeal of Glass Steagall, yes, when you put the taxpayer on the hook, you need to have legislation like glass steagall for protection. but the public should have never been put on the hook (FDIC) in the first place. raising the tax free profit to 500k for married couples, ZIRP, lack of gov't oversight on wall st. sub prime stated income loans, and unfettered greed from the lowest realtor, to the poorest buyer to the richest wall st. rook. true, that was all part of it. but the whole thing couldn't even have gotten started without greenspan's artificially low interest rates. if we had a free market in money, higher interest rates would have kept money dear.