>> |
06/07/10(Mon)13:01 No.1254072>>1253911 Not really,
it was text book excessive lending through government sponsored
enterprises by the federal reserve, rather like the Japanese property
bubble, in fact I would go so far as to say the similarities go right
back to Ponzi himself and even the tulip bulbs, the only difference is
the state was responsible for it. You blame big banks for "speculation"
but it was subsidiaries of fanny mae and freddie mac that
collaterialised the mortgage obligations in order to mask toxic assets
and sell them to the private sector, all with the state's seal of
approval to give it an air of legitimacy. If they're guilty of anything
it's trusting the state too much, which isn't exactly an argument in
favor of greater regulation.
Clearly reality indicates that there
are limits to the state's ability to regulate, it probably ended at
protecting property rights to begin with, we need a return to 19th
century style laissez faire banking where the source and usage of the
fungible assets are determined before every transaction takes place. |