Gand…
I didn’t say that ALL govt involvement was bad.
We actually agree about competent govt. needed…
I’m not suggesting that we have a Somalia scenario.
In my life, I don’t think that I have seen a competent US govt.
I remember Watergate, Jimmy Carter years, Reaganomics, Bushes and Clinton.
Have never heard any of them encourage responsible fiscal policy. Borrow from tomorrow to create the illusion of prosperity today…
The single root cause of the current global meltdown was 100% home financing being allowed/encouraged/condoned by the US govt, promoting a homeownership society.
Greenspan and low rates was not the problem. Low rates combined with minimum 10% down payment to buy a house would have kept the bubble from inflating.
ALL of the fraud, greed, & incompetence occurred as a direct result of 100% financing being allowed.
We have low interest rates today and no more 100% financing available. There is no bubble inflating today.
The govt will never admit that their incompetence and lack of oversight & ethics allowed this to happen.
Barney Frank et al, have blood on their hands.
FNMA was in bed with the govt. Responsible people now need vaseline to keep from feeling the result.
The 1929 crash and resulting depression was a direct result of the govt allowing the economy to inflate on artifical “wealth” The crash was inevitable. The Roaring 20’s were artificial.
The 2008+ crash was a direct result of the govt allowing the economy to inflate on artificial “weath”. The crash was inevitable.
Recent prosperity was also artificial.
It really isn’t complicated. It was good for the economy until it wasn’t good for the economy any more. The govt looked good until they didn’t look good any more.
Today’s global meltdown is far, far from over. The worst is yet to come and it could have all been prevented if only 10% down was required to buy a house after the turn of the century. ..HLS
