I agree with the facts but not the sentiment. Government-backed, subprime mortgages were made where they shouldn't have been, but did the right-wing Bush administration attempt to stop it happening? Or try and reduce the government's footprint on that market, as true financial right-wingers would have done on principle?
The private sector had every right to make those mortgages, but it should have been transparent to buyers how much risk was involved, and more importantly when it all went wrong those institutions should have been left to go bankrupt. How can a free market learn from its mistakes if the banks get rewarded by the government (via bailouts) for bad decisions?
Those calling for more regulation of banks' lending should consider that we may have been better off with less government intervention than there was. The only measure that would have helped were stronger rules on financial transparency and disclosure.
