Having Your Cake and Eating It Too!

SEE HERE Frankly it's almost always a fairly bad idea to do business with the government. They want to control your profits and they want to work you over if they are disappointed in the results. The government basically created the subprime mortgage market and forced banks to make shaky loans. Packaging the loans into groups was a strategy to lower overall risk (it's a statistical thing) but if things are toxic enough it doesn't work well enough. Blaming the lenders for bad loans seems totally obtuse. If I lend money and it isn't paid back then I blame the borrower. He's the one who failed to repay. If I loan money with collateral like a house, then my loan is secured by the value of the house. Part of the idea here was that the loans were safe because they were collateralized but the bottom fell out of the housing market again to a large degree because the government had created a highly leveraged situation in an arbitrary manner. Now they want to blame the lenders? I hope they lose this one big!