So, anyone have any plans to create 500,000 American jobs a month over next 5 years?

[Viper1]

richardhutnik said:

Kasz216 said:

1) he means the rich people would move, because the tax system is so idiotic.

2)  That isn't one of the major reasons the colapse happened... the collapse happened because the government forced banks to make  a bunch of bad housing loans that created an unheard of national property crash. (Property up and downs are ALWAYS local only).  This caused the derivitives market to fail.

If you know you are being forced to do something that is financially stupid, why would you leverage to the hilt against it, as they did?  It is not helpful to spin a story a certain way, in the face of reality  that says otherwise, just to prop up a view of reality.  It is correct to say that the government cheerleadered lending, and also pushed legistlation against redlining.  It is wrong to say, "Well, the excess leveraging on what is here didn't work, because the government made it so". 

But, you are free to believe as you like, even if it isn't totally connected with reality.

That's rather simple.   It's called government backing.   If it all goes south, they'll bail you out.

Basically those government programs that pushed ARM's and high risk loans did so with the guarantee to the lender that the government would pay off bad debts.  Which they ended up doing. 

That called moral hazard.  Loans are lent out based on risk factors to the lender.  When the government removes that risk, what do they care if it gets paid back or not...Uncle Same will save the day.