nancylebov (nancylebov) wrote,

Democracy failure

I've ranted any number of times about the incompetence of very well-paid people and the subprime mortgage crisis. I've blamed the banks and the investors and (though they're not as well-paid) the financial journalists.

As a libertarian, I'd managed to completely forget there's a government agency which could have noticed something was going wrong.

In late 2006, as economists warned of an imminent housing market collapse, housing Secretary Alphonso Jackson repeatedly insisted that the mounting wave of mortgage failures was a short-term "correction."

He pushed for legislation that would make it easier for federally backed lenders to make mortgage loans to risky borrowers who put less money down. He issued a rule that was criticized by law enforcement authorities because it could increase the difficulty of detecting and proving mortgage fraud.

Read the article for more, more, more about negligence, sloth, and extravagance.

Link thanks to Obsidian Wings.

Attitude affected by libertarian-bashingat Making Light.
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