Capital New York

obfuscator commented on Bloomberg: 'Plain and simple,' Congress caused the mortgage crisis, not the banks

Exactly right (for once.) The banks may have picked up the subprime ball and ran with it but it was Congress who created the incentives - or should I say, the REQUIREMENT as I can recall numerous banks that were investigated for not making "enough" loans during the bubble. And as far as irresponsiblity is concerned, when Congress is irresponsible it causes MORE damage than when other institutions are. Congress makes laws that others are required to comply with. If the First National Bank of Nutville starts lending money to zombies, the regulators can come in and close them down. Who intercedes when Congress writes a Zombie Reinvestment Act that requires banks to lend money to zombies???? And the most disgusting thing is the SOBs blame everybody else when their stupidity leads to a disaster.

Posted on November 1st, 2011 2:58pm