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- Jun 3, 2009
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- Very Conservative
The whole point of regulation in the first place is to control the bad behavior that's likely to occur. If we'd maintained regulation, then the banking industry would not have been able to get involved in mortgages, would not have been stuck with tons of bad paper and bailouts would never have been necessary. Now keep in mind, I entirely disagree with the bailouts, I think every one of those companies should have been allowed to fail based on their own stupidity, but once it stops being American Home Mortgages and starts being Bank of America that's facing failure, it becomes a different ball game. There are certainly banks that refused to get involved in the sub-prime mortgage game, but many, many just bought paper thinking it would all magically be good and made some really horrible decisions. They should have been allowed to die, but if that happened, there goes American consumer confidence, there would have been riots in the streets. It was really a no-win situation, there were no good solutions, except not to deregulate in the first place.
Why should there be confidence? Even if they didn't get bailed out, why should we trust these companies with our money?