Re: RECTAL CRANIAL INVERSION MOMENT OF THE DAY

That's exactly NOT it.

It wasn't the regulation, THEY WERE FORCED by Janet Reno to give these risky loans starting in the late 1990s.

Regulation would have only been a band-aid on the risk forced by the government in the first place.

If you don't get that, then you don't get anything that has to do with economics, and government mandates.

On Mon, Nov 22, 2010 at 5:22 PM, you wrote:

That's exactly it!  They DIDN'T regulate!  And nobody forced the banks to do anything.  They did it all themselves, because nobody was regulating!

----- Original Message -----

Can you take the truth?

"Another political fable is that the current economic downturn is due to not enough government regulation of the housing and financial markets. But it was precisely the government regulators, under pressure from politicians, who forced banks and other lending institutions to lower their standards for making mortgage loans.

These risky loans, and the defaults that followed, were what set off a chain reaction of massive financial losses that brought down the whole economy.