Because further regulating lending is the best way to protect consumers from predatory lenders who are in danger of not being paid. Who are they trying to protect again? Sure some people may lose their homes, but they are still free to go rent. Last time I checked there were still plenty of houses and apartments for rent, and there’s nothing in the Constitution that guarantees us home ownership.
The real losers in this situation should be the institutional lenders who were handing out money like it was popcorn. The people running these companies are supposedly educated and able to assess risk. Of course, there really isn’t a need to assess your own risk if you know the tax payers are going forced to assume it for you courtesy of your old college classmates and buddies in the gov’ment.
Washington is so afraid that Wall Street may have to suffer through a bump in the road that they are willing to sell us down the river to keep it from happening.
Hell, why not take over the FICO and every other credit rating system while you’re at it? You could tie it to income tax returns, making sure that only people who filed taxes had the opportunity to even rent. And why not handle payroll for every company in the country while you’re doing that so that you can make sure that everyone’s being paid fairly?
More regulation=more expense for the consumer. Thanks gov’ment! You’ve effectively made yet another thing more expensive.
