We need way more regulation of lenders, especially housing lenders. Way too many
people who own homes should never have been allowed to in the manner that they
did. We, and our banks, need to be protected from our respective greed.
To "Hutterite" you are wrong. The banking industry is nearly equal to
the Health Insurance industry as the most regulated industries in the US. You
and your ilk fail to recognize the fact that the bad loans were made as a direct
result of 80 years of regulations. You blame the banks for making loans that
federal regulations told them they had to make.Prior to the
1940's less than 6% of all home loans were "sub-Prime". By 2008
18.8% of home loans were sub-prime. When banks were less regulated and fully
responsible for their loans, they made fewer risky loans. Once the government
regulated them and guaranteed the loans, we had more risky loans.Why
make it harder to get loans when the solution is simple. Let banks be
responsible for their own loans and let them decide the criteria for who gets a
loan and who doesn't.
Good article. Nice articulation of the issues.
Nicely said. But the real crooks here are the ones who "tranched up"
those mortgage securities and sold them for 10,000 times their face value. They
created the biggest bubble in history. Every single one of those crooks should
be in jail, and I mean Goldman Sachs and their ilk.