_Damian S_ wrote:
government has no business attempting to manipulate the market
and
_Damian S_ wrote:
there should be limits on the amount someone can borrow
The market is always going to react in its own short-term interest. It will only limit if not bailed out after a catastrophe. We have a shared interest in mitigating that. That catastrophe that is required to self-correct the market is something we as a society really can't afford. So, how does this limit get imposed if Government has no business to manipulate the market? Now to add some personal context: I agree to limited manipulation. The regulatory type. The root is the bad mortgages. But no-one would have really purchased the securities containing them if they weren't first bundled in a decent rated package. Here's a funny. The guy that created credit-default swaps to help correct the savings and loan debacle in the early 90s approached Greenspan, then Chairman of the Fed, and stated that while they held a benefit and were a powerful tool, they needed to be regulated due to their nature. (Paraphrasing) But Greenspan said No. The market would regulate itself. And it decided no, it wouldn't. Later Greenspan is stating in public record in a Senate hearing that he under-estimated the "human greed factor". So, while it sounds good to say that the government should stay out of the market, I mean that's what's been sold for the last 30 years, I really wonder why.
This statement is false