Rob Viglione

Crisis Contained as Fed Purchases Mortgage Backed Securities

As stated in this article, "exposure to risks posed by further defaults on home mortgages will be shifted from the lending institutions to the Fed."

The cost of these risks has not disappeared, but has merely been "socialized". In other words, those who had nothing to do with the bad business decisions are now suffering the consequences.

Playing the social engineering game is easy from the sidelines; at some point we must ask the question of whether or not this is good for the country's long term health, and even more importantly, is it morally justifiable to take and redistribute other peoples' property? I contend that it was this mentality that caused this financial crisis. More of the same will ensure we head down this path once again...