fkusumot said:
No. The blame goes to government. It's not like anyone is that surprised that there was an implosion in the sub-prime market. The only thing they didn't count on is how illiquid and worthless the CDO's and Credit Swaps would become when it was time to shit or get off the pot. The Republicans get more blame because it happened on their watch and they're getting punished for it this election. That's certainly not to say that lobbyists for investment banks weren't contributing money to the campaigns of Democrats who held key votes. This was a really big fuck-up on both sides and a repudiation of libertarian economics. On the position of regulation Democrats and Republicans are probably going to agree more so then less so, of course they'll put their own little spin on things to make it appear that they are diametrically opposed. |
I don't see how this could be a repudiation of libertarian economics because you could argue that a large portion of the problem was caused by quasi-governmental organizations (like the Federal Reserve, Freddy Mac, and Fanny May). Beyond this, you can't ignore that many banks were being "encouraged" to take on high risk loans by the government in order to increase home ownership for poor people.
In my opinion, this crisis is just another example of the government creating larger problems when they try to solve a problem. The government is like a carpenter who chooses to use large spikes rather than finishing nails and is (somehow) always surprised when they crack the wood.
