> gMoney wrote:
> That's an awesomely simple explanation of how both parties ideologies
> contributed to this mess.
>
> Republicans: "De-regulate!"
> Democrats: "Please start lending to people who can't afford it!"
>
> Result?
>

The "it was frannies fault" argument is BS.  They didn't make the
loans.  Period.

And it's not that rules were "relaxed" to lenders, although that didn't help.

The problem was that lenders could lend & sell (i.e., not bear the
risk) and the buyers didn't know what they were buying.  And for 14
years people have been saying that's a recipe for disaster and the
government let it ride because Wall Street said, "don't worry".

On top of that, the gov't allowed Wall Street to borrow 35x their
worth to buy and sell these packages.

It's a regulation problem that's been known about for a decade and 1/2
and it boils down to the government allowing the lenders to lend other
people's money.

If was lending Robert's money, I would take risks that I sure wouldn't
with my money.

And therein lies the problem.

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