First crack at the big bailout
Posted by sanityinjection on September 25, 2008
Canadian David Warren points out that those who are blaming capitalism and free markets run amok for the financial crisis couldn’t be more wrong:
In fact, one of the major factors that led to the creation of the dubious subprime loans was *anti-capitalist* pressure, from governments, non-profits, and discrimination lawyers, on financial institutions to ignore credit math and create programs to help poor people with bad credit buy homes. We were told that home ownership was a basic human right – but that means that the financially irresponsible have that right, too. Not that this excuses deceptive, fraudulent, and manipulative practices by the firms in question and their CEOs. But it does suggest that maybe regulation of the industry by people with agendas other than the smooth sailing of the economy isn’t the best solution.