Jlivermoor

Bailouts: The Moral Imbalance

This author is definitely the democrat he claims. High moral authority, and little understaning of the economics. These mortgages are worth 95 cents on the dollar if held, and the government can afford to hold them. The breakdown on the system, is not just the excesses by the banks whose bean counters thought they had controlled the risk, but in part due to, and exacerbated by ill concieved mark to market regulation imposed by Sarbanes Oxley. In otherwords, yes our government failed us, the politicians quick to demagogue business and with the hubris to believe government regulation solves everything. It wasn't the CEO's of Fannie Mae's fault, but the politicians who wished to dole out favors for votes on special interests. It started before 1992, but you only need to look at the loans to lower income buyers Clinton forced on Fannie Mae & Freddie Mac.