Why did banks lend more money then they had? They were reassured by the US govt via Freddie and Fannie they could not lose on bad loans. And, US govt policies motivated Freddie and Fannie to buy bad loans. Until politicians experts understand their 'good intentions' have consequences, any fixes will not end the problem. But then maybe that is what the politicians really want, more self created problems so they can usurp more power. What's killing capitalism is statist socialism.
Inequality is Killing Capitalism
This article has a better take, but it fails to lay the blame on Congress, especially Barney Frank and Chris Dodd.
http://washingtonexaminer.com/another-place-where-republicans-keep-failing/article/2513971#.UK7PCIbpV2s
Inequality is Killing Capitalism
Govt caused the problem in the first place. Why will they do anything to fix it?
Inequality is Killing Capitalism
Why did banks lend more money then they had? They were reassured by the US govt via Freddie and Fannie they could not lose on bad loans.
And, US govt policies motivated Freddie and Fannie to buy bad loans.
Until politicians experts understand their 'good intentions' have consequences, any fixes will not end the problem. But then maybe that is what the politicians really want, more self created problems so they can usurp more power.
What's killing capitalism is statist socialism.