Quote:
Originally Posted by RawAlex
Dravyk, the alternative is what? Endless bank failures, a failure of the real estate market, the closing of companies who are unable to get financing, and so on?
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Well, since theoretically the Fed is only supposed to set monetary policy, and theoretically we live in a free market economy: this is beyond the mandate of the governement
, theoretically.
Frankly, as much as everyone is concerned with homeowners and individual investors, it occurs to me that if home buyers had declined to take part in risky mortgages and not chased unsustainable returns, much of this wouldn't be of concern.
I mean, Christ on toast: one of the first things I learned in my high school economics class was that with the potential of high rewards comes significant risk - and that seems to have been a lesson forgotten by most in the race to margin CMOs and credit swaps and oil futures.