http://www.bobbarr2008.com/press/press- ... subsidies/
These problems are almost entirely the fault of the federal government. Congress created programs to artificially inflate the housing market, established Fannie Mae and Freddie Mac to be exempt from normal scrutiny, oversight, and competition, and expanded their activities in response to the sub-prime lending meltdown.
Okay, granted, this would not stop the actual crooks. People who lie, cheat, and steal do so because it is in their nature to do so. But, I believe that is really a small part of the current problem. The larger part of the problem is people who rationalize that what they are doing is really okay. That kind of rationalization would not last long if the people engaging in it were more immediately subject to market forces.
(Mod: I felt like this is where this belongs. Feel free to move it, as appropriate.)
