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Regulations caused crisis? No, lack thereof Date published: 11/2/2009
Regulations caused crisis? No, lack thereof
This is in response to Thomas Sowell's comment on the economic crisis, in which he lays the blame on federal regulations ["Blowing a bubble brought us to our knees," Oct. 21]. Another explanation is lack of regulations. In 1999 and 2000, federal laws were overturned after decades of lobbying by the financial industry so that banks and Wall Street could again take the kind of risks that had led to the Great Depression. This set off a mad scramble for new money-making investments and was the real start of the financial crisis. Far from being forced to grant bad loans, banks were now eager to do so because that was where the big money could be made. The subprime loans generated the highest interest rates and were the most desirable to investors. Wall Street firms bought these mortgages as fast as they were created, and demanded more. The banks got commissions and fees, which they then invested in high-risk and leveraged securities. The financial industry can't control itself, because making money is its priority. It was lack of regulation and lack of enforcement that helped generate this crisis. Barbara Perry Spotsylvania
As I wrote previously, Las Vegas and Florida are the largest foreclosure areas. I'll bet dollars to grilled uodenal donuts that you'd find it very difficult to see minority owners in the foreclosed homes in Las Vegas, and in FL I doubt that the minorities are that much in the ascendancy in foreclosures. Don't forget, Hispanics are hardly minorities anymore. That said, I'll also bet that some writers here would love to THINK that most foreclosures are by blacks (y'know, those leeches of gov't dollars).
Let me get this straight - you know several folks who work for refi companies and you had "many spirited conversations". The end result is that you've concluded that "most of the subprime loans were originated for minorities ". Is that really your position? If so, that’s insane. How about looking for or trying to provide some real empirical data that supports your position? Until then, you're just spreading unsubstantiated racist rumors. Shame on you.
You're all making me hungry. Besides. Ingrid Newkirk (Founder of PETA) just called Al Gore a steak-a-holic baby on Beck a few hours ago. How about this? Could be a real hoot to watch. http://thehill.com/blogs/blog-briefing-room/news/66173-bill-clinton-to-debate-george-w-bush
Bush Meat is one thing, Long Pig another entirely - lots more work! You should've seen the battle on Iron Chef!
eyeroll As I say, the best puns are the worst puns.
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