Quote:
Originally Posted by Kitsune
...and unchecked they do it to the point of completely and dangerously exhausting resources in a mad frenzy and permit wild, uncontrolled fluctuations that lead to disastrous boom/bust cycles.
I absolutely do not want a government bailout, but some regulation in the loan industry would have prevented this mess from happening in the first place.
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There is a ton of regulation in the loan industry and it didn't prevent this from happening because no amount of government regulation can prevent people from doing stupid things like buying more house than they can afford. The loan companies didn't do anything wrong. Let me repeat that...
THE LOAN COMPANIES DIDN'T DO ANYTHING WRONG!
They lent money to people who promised they would pay back loans and who said they understood that when the fed raises interest rates, their payments would rise. But greedy people bought houses they couldn't afford and flipped them or bought more of them without thinking that the bubble would eventually burst.
Government meddling in the markets is what created this problem. If we got rid of the unconstitutional federal reserve, they wouldn't control the money supply and we might have something to back up our money rather than the promises of government.