tag:blogger.com,1999:blog-7583176622645660127.post7153368665308637226..comments2014-07-07T16:55:28.096-04:00Comments on Booboisie: Can financial institutions exist under unbridled capitalism?Jan and Stuhttp://www.blogger.com/profile/00260700417500660434noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7583176622645660127.post-69723626743774695982009-03-03T09:49:00.000-05:002009-03-03T09:49:00.000-05:00Unbridled capitalism? You need to get your facts ...Unbridled capitalism? You need to get your facts straight, because government interference in our capitalistic system started this mess.<BR/><BR/>In the late 90's government regulations were handed down to force banks write more low income loans. This forced banks to write loans for borrowers to whom they would not normally lend. Forcing banks to loan is not unbridled capitalism.<BR/><BR/>Early in this decade, the Fed artificially reduced interest rates, instead of letting supply/demand do so. Again, government interference via interest rate setting is not unbridled capitalism.<BR/><BR/>The government induced low lending standards combined with the availability of artificially cheap money, led to to mortgage problems we have now.<BR/><BR/>Granted, there was some greed out there but not only on the part of the banks. People were buying houses that they could not afford, speculators were trying to make a fast buck, etc. All of this was brought on by the artifically cheap money and the lower lending standards that came about from government (not market) policies. So much for unbridled capitalism.<BR/><BR/>Now the government wants to blame the banks, give them money, and force lending again. Did we not learn from this forced lending the first time around?<BR/><BR/>If I forced you to make a loan that you did not feel comfortable making, wouldn't I be mistaken to then blame you when the loan went bad - telling you that I am now going to have MORE say in the loans you make?<BR/><BR/>I would love to see whether or not financial institutions could exist under unbridled capitalism, but with unbridled government interference we will never know - at least not here.Anonymousnoreply@blogger.com