The KGB Oracle Forums General Public Discussion (SPECIAL ACCESS) KGB Political Debate Central regulation nation

http://online.wsj.com/article/SB10000872396390444184704577588872840133362.html

regulations are far worse for business than straight taxation. this is the reason most of us fear and despise big government. we want more cops, teachers, firefighters, far fewer deputy assistant superindenents of sustainability, diversity consultants, advisory boards, etc

Amen.

Alternative to regulation is even worse. We had 2009 financial collapse, you want MORE of that but now with radioactive dumps in your backyard and toxic chemicals in the baby formula?

Regulation might be bad for business, but lack of regulation is bad for everyone else.

Regulation is what caused the financial crisis. Forcing banks to give loans to people who demonstrably will not be able to pay them back is a large part of what lead to this debacle. Obviously unscrupulous people took advantage of that to make more money for themselves, but its still the regulation that provided that avenue.

Repackaging bad loans and selling them to unaware investors is what caused this financial crisis. There wasn't enough oversight and not enough regulation in this area.

Claiming that mandate to sell more homes was the sole reason that caused the collapse is revisionism and outright untrue.

Most NINJA variable loans were made not because government forced them to happen, but because there was a demand for them.

Regulations are damaging without any ensured gains so long as corrupt, ethics-violating politicians like Charlie Rangel rotate in/out as chairs of the regulation & oversight committees.

Who establishes and overseas these regulations? The very same people who make exceptions and oversights to the highest bidding lobbyist of the hour. (Both parties are included in this rant.)

Sinij: you twist your counter-argument into stating that the housing crisis was not the sole reason for the collapse; this may be true, but Kaotic stated it was "a large part," not the "sole reason." And he's correct: shady characters like Barney Frank and shady idiots like Nancy Pelosi (one of my local representatives I'm sad, and deeply embarrassed to admit) played their political games, and forced banks to deal in risky loans which DID in large part contribute to the collapse.

Now I remember why I generally avoid this section of the forums. ;P I need to back away once more before you guys pull me back into political debates.

Weeeee!

so banks made risky loans which came back to bite them on the ass so they fucked over everyone they could and scared congress into bailing them out and now they are sitting on piles of taxpayer money and holding houses off the market to try to keep their values up but its not working and the people who got fucked were the taxpayers since no one had to put any money down and the investors got their money and the banks got thiers and the people who got thrown out of their houses just went back to renting.

yes yes, but the article discusses how big business desires regulation- i would agrue that a bailout is a type of price-floor and hence regulation- and benefits from it, because regulation strangles competitors in their proverbial cribs.

fuck the banks, lets talk about a normal person opening a restaurant or plumbing business

This is not what I said.

What I said is that bad loans that were repackaged and sold as a safe investment securities and ultimately resulted in a financial collapse and recession were mostly made because there was a demand for them. Sure, a small portion of them were due to bad "mandatory" regulation aimed at expanding home ownership. Most of them, and the worst excesses of that system, were caused by DEMAND FOR REPACKAGED SECURITIES. Nobody understood what these securities were and regulators did not step in and said, "wait a second, these are not AAA assets!". So a whole bunch of bankers made BILLIONS selling risky junk bonds as a ultra-secure assets.

That is the root cause of recession.

Worst thing, since it wasn't illegal (no regulation!) nobody even went to jail over it.

You're asserting that since the regulators didn't do their jobs we need more regulators?