Originally Posted by
jsled
The talk always sounds good. Laissez faire, less regulation, hands off business. Then all of a sudden, the largest mortgage broker is gone, the gov is bailing out Fannie Mae and Freddie Mac to the tune of 100B each if need be. And now 85B for AIG. I wonder if a little more regulation could have prevented this? Eight years of failed policy culminating in one big bill for the taxpayer. Fiscally responsible my arse.
It's funny how your own arguement makes the point for the opposition. The reason that companies like Fannie and Freddie failed is the EXACT reason you espouse to be the downfall. Government regulation was the cause for their failing. The were backed by the federal government with no fear of failure despite the bad loans they wrote. If the companies were left alone in a pure market, they would not have made most of the failing loans that were made because they would have actually had fear of failure. They knew they had no fear of failure because "the gov't could not let us fail."
Do not try to tell me that more regulation is the answer. Almost every industry in this country with heavy regulation runs inefficiently and has to be bailed out with taxpayer money consistently. But, I guess you like how Medicare and Social Security are being run...