Quote:
Originally Posted by Si
De-regulation caused most of the problems. And the government caused most of the de-regulation to happen.
See where you're wrong?
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Except that it wasn't deregulation. It was the government meddling in the free market of lending risk by forcing banks into bad risk lending, and then buying up the bad risk through Fannie and Freddie. If the government had stayed out of it in the 90s, banks would never have started making all those crazy loans in the first place, and then wouldn't have had the ability to sell the paper to F & F, or use desperate measures like derivatives to shove off the risk. The banks simply would have continued as they had been, only making loans to people that could afford them.
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