Re: "Light touch regulation" - where did that get us before?
"It lead directly to the sub-prime mortgage f*** up"
No. that was caused by SPECIFIC regulations that (essentially) told banks to lend money to people who couldn't afford to re-pay them, because, political correctness and affirmative action and other similar feely things.
Link to Article
"a federal program that ordered banks to lend money to people that had no way of paying it back, lend money to people that didn’t have to take a credit test and pass it, lend money to people that everybody knew would never pay it back"
"There was a thing called the Community Reinvestment Act. It was originally proposed by Jimmy Carter, but it sort of languished after Carter proposed it. Bill Clinton in 1998 rejuvenated it, reignited it, as a means of distracting people from the Lewinski scandal."
"Community Reinvestment Act was a plan designed to get people into houses who had no business being in houses ’cause they couldn’t afford them. " " The banks were under federal orders to do it."
"most of the beneficiaries in the subprime mortgage were minorities. Racial minorities. So, anyway, millions of people who could not afford bank loans were given them, and they went out and bought houses. This led to the utter crash of the housing market."
"The banks, working with Fannie Mae and Freddie Mac, packaged these worthless mortgages into pools of worthless mortgages and called them mortgage-backed securities, and sold them — under false premises, essentially."
"The banks foisted off worthless paper to people who didn’t know what they were buying until they figured it out."
"That bunch of people decided to repackage them as something else and sell them again, and all the while they were insured by Fannie Mae and Freddie Mac. Worthless paper, worthless loans that everybody knew were worthless kept being passed down to other investors until finally there were no more saps left to buy them and that’s when the crash happened and that is the Cliffs Notes version of what happened"
Rush says it better than I could.
(I wonder if this one will exceed my current downvote record, near the top of the comments - currently at 70 downvotes! Heh, I must be doing something "right" [wing])