websmith

Who's to Blame for IndyMac's Failure?

If there were no OTS, it wouldn't have happened.

In the wake of the Fed and quasi-deregulation generated .com collapse, the Fed lowered the interest rate to prop up the economy. Next, Congress passed legislation making it harder to declare bankruptcy.

The additional money supply and lenders' protection against bankruptcies encouraged them to make really bad loans.

If the Fed did not exist and Congress would stop its illegal regulation of industry, things like this wouldn't happen.