Can Obama Lead Us Out of the Coming Depression?

Most of the time government interference hurts not all the time. Better regulation of the home mortgage and Wall Street would have helped to divert the current crisis.

 

Not interfering in the home mortgage business by encouraging banks to loan money to people who couldn't pay it back would have been much better.

 

This message is brought to you by FEMA, Walter Reed medical Center, and the IRS.

 

Businesses make their own business decisions. Banks decided that a lot of money could be made in subprime mortgages. Wall Street financiers decided that more money could be made in bundling those loans into derivatives. I've never been associated with or known of companies that make their business plans on government encourage. Tax breaks are a different matter because they factor into the business plan. I don't think that was involved here.

 

Banks altered sound business practice to comply with new laws that desired to make home ownership affordable to people who couldn't make the payments. Yes, a new industry was born but it started with government interference.