Reader comments: Political meddling could make economy worse
8 comments | Read story
Roland Kayser | 12:38 a.m. July 24, 2008
Mr. Sowell neglects to mention the one thing that government did to most aggravate this crisis: the repeal of the depression-era Glass-Steagall act, which prevented commercial banks and investment banks from mingling their businesses. This repeal allowed commercial banks to make loans without having to consider whether the buyer could possibly repay the loan or not. The loan, bundled with thousands of others, would be sold on Wall Street to gullible investors assuaged by the bond rating agencies assurances that they were AAA rated securities. Regulation is certainly not the answer to all problems, but it is the answer to some problems.
Cats | 5:39 a.m. July 24, 2008
I've always loved Thomas Sowell. He has always been a real defender of the free market. He is right that government intereference and fine tuning of the economy are the culprits in most economic problems we face.
Government needs to get out of the way, let the chips fall where they may and let the free market work. They is the way to prosperity for America and the world
Government needs to get out of the way, let the chips fall where they may and let the free market work. They is the way to prosperity for America and the world
lock 'em up | 6:50 a.m. July 24, 2008
I just don't understand how the American citizenry can be so apathetic or even supportive of all the Government meddling in our financial markets. It may help a little in the short run ("bailing out" Bear Stearns, Fannie Mae, Freddie Mac)but in the long run we're going to have to pay the piper. Every member of the Board of Directors at Fannie and Freddie should be in jail right now. They were supposed to oversee the management of these companies and naturally all the big shots were paid fortunes while the ordinary shareholders got hosed. It's sickening.
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Anonymous | 7:01 a.m. July 24, 2008
For once I agree, Tom. Let's take our medicine, and let 'em sink. Eventually, things will turn around, hopefully with the surviving lenders wise enough not to lend to people blinded by greed with no hope to pay.
KM | 8:37 a.m. July 24, 2008
How come the MSM is not screaming about the directors of Fannymae and Freddymac and the fact that these same people were part of the Clinton administration. If the shoe were on the other foot and these people had come from Bush and Co. I just gotta think that we would hear something about this?
Chris | 9:26 a.m. July 24, 2008
How about the CEOs of Fannymae and Freddymac walking away with million dollar separation packages after sinking the ship. They should be on trial for criminal actions and required to pay back the money to the corporation treasure. Of course one is only a criminal if they are a petty theif, when one ripps of millions they are smart business men with good lawyers.
Oscar | 12:29 p.m. July 24, 2008
Not only did mortgage institutions jump at the chance to make unsafe loans to potential home buyers, they found a way to defect their lack of moral fiber by raising fees, making their money, selling off the mortgages to another entity, and laughing all the way to the bank, knowing that the home buyers were eventually going to be foreclosed upon. They made money coming and going, enabled by the government, will little regard for the people ultimately hurt by their greed. The subprime lending market was replete with thieves and fraud with no oversight to protect the American people who eventually have to pick up the tab.
Charles | 6:58 p.m. July 24, 2008
The silence is deafening from the left. What? No comments about how bad these CEO's are? What about their salaries and bonuses?
Yes, we know...it's only Big Bad Oil that you want to cry and scream about....
Yes, we know...it's only Big Bad Oil that you want to cry and scream about....
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