A Bailout for All Our Bad Decisions?


Last week’s events were rooted in distressed mortgage securities whose optimistic values were facilitated by quasi-governmental entities Fannie Mae and Freddie Mac. The investment banking capital write-downs were turbocharged by the Sarbanes-Oxley Act, which did what too many laws do — it fixed yesterday’s problem. The amazing expansion of credit was fueled by a Federal Reserve offering an easy-money policy that led us right into a credit bubble. All this was made worse by the government enabling some people’s tendency to want more house than they can afford.

Mark Sanford – A Bailout for All Our Bad Decisions? – washingtonpost.com.

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