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Yea because regulators totally bought and sold bad assets and promoted their sale. Don't confuse regulations with tax breaks.

javert 13y ago
> Yea because regulators totally bought and sold bad assets and promoted their sale Yes they did. That is the literal, intentional, lawful purpose of Freddie Mac and Fannie Mae, which are the source of a bubble market for bad mortgages.
- peregrine 13y ago
  Freddie Mac and Fannie Mae do way more than mortgage houses, first of all. Second they are an example of a single entity among hundreds or thousands who also played a roll. Freddie Mac and Fannie Mae are subject to the same Regulatory and market pressures as any other financial institution.
  - javert 13y ago
    > Freddie Mac and Fannie Mae are subject to the same Regulatory and market pressures as any other financial institution No. Freddie and Fannie are force-backed government bureaus that risk/waste taxpayer money in the pursuit of American housing policy (i.e. that everyone needs to live in a standalone house). They are not subject to market pressure, because they are part of the government. That is the very definition of not being part of the market.
    - peregrine 13y ago
      You say "government" like the "market" and the "government" are separated by a vacuum. Spoiler alert, the "government" is the single largest purchaser for the "market", they drive the most demand and ensure a stable supply for a large majority of commodities that prop up your "market". They also seem to provide a safe and stable market place. FMFM are an organization that is subsidized by the government and is held accountable to the government. In the same way Farmers are subsidized and held accountable to the government. In the same way hospitals and eldercare are largely subsidized. In the same way weapons manufactures are subsidized. In the same way fire departments, police, road construction, rail, utilities, and air are all subsidized by the government. And whoa, low and behold they are all also held to the same regulatory and market pressures any other company are held to. Just that, society decided these institutions are important to THE PEOPLE as a whole to let them go to shit because they don't attract investment because the margins are too thin. Its not as black and white as you want to make it. Look hard enough at an "market" and you will find government subsidizing it in some way, even when it regulates.

javert 13y ago

> Yea because regulators totally bought and sold bad assets and promoted their sale Yes they did. That is the literal, intentional, lawful purpose of Freddie Mac and Fannie Mae, which are the source of a bubble market for bad mortgages.

peregrine 13y ago
Freddie Mac and Fannie Mae do way more than mortgage houses, first of all. Second they are an example of a single entity among hundreds or thousands who also played a roll. Freddie Mac and Fannie Mae are subject to the same Regulatory and market pressures as any other financial institution.
- javert 13y ago
  > Freddie Mac and Fannie Mae are subject to the same Regulatory and market pressures as any other financial institution No. Freddie and Fannie are force-backed government bureaus that risk/waste taxpayer money in the pursuit of American housing policy (i.e. that everyone needs to live in a standalone house). They are not subject to market pressure, because they are part of the government. That is the very definition of not being part of the market.
  - peregrine 13y ago
    You say "government" like the "market" and the "government" are separated by a vacuum. Spoiler alert, the "government" is the single largest purchaser for the "market", they drive the most demand and ensure a stable supply for a large majority of commodities that prop up your "market". They also seem to provide a safe and stable market place. FMFM are an organization that is subsidized by the government and is held accountable to the government. In the same way Farmers are subsidized and held accountable to the government. In the same way hospitals and eldercare are largely subsidized. In the same way weapons manufactures are subsidized. In the same way fire departments, police, road construction, rail, utilities, and air are all subsidized by the government. And whoa, low and behold they are all also held to the same regulatory and market pressures any other company are held to. Just that, society decided these institutions are important to THE PEOPLE as a whole to let them go to shit because they don't attract investment because the margins are too thin. Its not as black and white as you want to make it. Look hard enough at an "market" and you will find government subsidizing it in some way, even when it regulates.