Put her in charge. Now. or preferably, ten years ago...
Alice, what Mary Kaptur failed to mention is that this financial crisis owes it existence (in part) to Congress passing the Community Reinvestment Act (1977). This as you undoubtedly realise encouraged with all the authority of law the onset of bad loans. Having done so the authorities compounded the errors by failing to ensure financial regulation remained on a sound basis. It amazes me how sanctimonious politicans become when their own failings are exposed. They are supposed to be looking after all of us all of the time, failing to do so and then blaming others prevents an honest acknowledgement, a necessity if we are to contain the endless cycle of government losing control of itself and spending more than the country can afford.
Barry,I know this argument, and with the greatest respect, I don't buy it. This act has been around since 1977, and it is there to ensure fair treatment for ethnic minorities.I totally agree with your point about financial sector regulation.The problem was one of easy credit.Alice
Alice, My suggestion of course centred on single point in a complex equation. In isolation it might be said that this cannot be blamed. However, as with all human behaviour, and this is what we are talking about, one small step can easily lead another and another, eventually turning reasonable principle into a corrupt nightmare. It was to this that I alluded.As the widespread retreat from financial probity took hold other unrelated factors intruded and exacerbated the potential scale of the problem (spendthrift governments and individuals). I acknowledge your sceptism as justified in part, but this does not alter the fact that Mary Kaptur neatly sidestepped political culpability. Best wishes.ps I very much enjoy your site. Keep at it.
Alice, you may have seen this article, if not its worth a scan as it summarises my broad understanding..http://stats.org/stories/2008/understanding_financial_crisis_sept28_2008.htmlRegards Barry
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