CameronPoe wrote:
Poorly regulated free markets for the lose. As George Soros said - totally free markets are as poor an ideology as Marxism because they fail to account for the nature of man, invariably greedy. Irresponsible mortgage lenders couldn't give away cheap money fast enough in their bleeding the golden goose dry.
I disagree with you on this. See, I think the problem is that the market isn't free enough. There should be no government-run mortgage companies. The whole industry should be completely privatized and mostly self-regulated.
The problem isn't private control of the market -- the problem is bailouts. Of course these companies are going to take massive risks if they have a good chance of the government bailing them out when they fuck up.
The way to solve this isn't more regulation, it's making sure we don't bailout anyone. Don't bail out the companies, and don't bail out the families either. I know that's harsh, but it's the only way you'll have a functioning market in the long run. If people and companies truly feel the consequences of irresponsible choices, then they'll take less risks. This will be a good thing, and it will result in a stable future.
It's already bad enough that the Fed Reserve bailed out Bear Stearns just so that J.P. Morgan could consume them. We need to lessen the power of the Fed Reserve and free up the mortgage market more.
