tag:blogger.com,1999:blog-33693245.post5499437950827745073..comments2024-03-04T23:40:58.133+05:30Comments on The Big Picture: Don't blame it on sub-prime loansThe Big Picturehttp://www.blogger.com/profile/06018983225756352176noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33693245.post-45181654840769204622008-10-31T16:46:00.000+05:302008-10-31T16:46:00.000+05:30I fail to see how "deregulation" had anything to d...I fail to see how "deregulation" had anything to do with it (or not enough regulation) - Since Sarbanes Oxley and Elliot Spitzer wreaking havoc on Wall Street, a lot of financial business fled Wall Street. The Journal in an OpEd piece by Freeman http://online.wsj.com/article/SB122541609109386729.html reminds us that regulatory spending has actually gone up (OK, I can see the counter argument that it was not enough or was in the wrong areas or whatever).<BR/><BR/>The single most important factor (if there is such a thing) is the wilful intent of Congress (Barney Frank and Christoper Dodd) to ignore the dangers posed by Fannie and Freddie and the deliberate attempts at encouraging (forcing) lenders to lend to less than worthy customers. 750 billion is nothing compared to the more than 5 trillion assumed when the Feds took over Fannie and Freddie.<BR/><BR/>This crisis, like other crises, will look different depending on the political spectrum we fall under. The pendulum is swinging and it seems to me that we are in for some really deep, dark, dangerous territory where the free market will take the blame for all of our ills and the world economy will stagger.Krishnanhttps://www.blogger.com/profile/10392990372263068251noreply@blogger.com