Fed is enabling credit addicts
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feds, Mortgage Interest Rates, rate cut March 24th, 2008Abuse of easy credit seems more rampant than drug abuse.
If the DEA ran its drug programs the same way the Federal Reserve and the Treasury Department run our economy, they would be handing out free crack to addicts on every street corner.
For months, our country has faced an unprecedented financial crisis. To avoid an even bigger crisis, the government may have had no choice but to take the actions it did, but no one should mistake the fact our response to the excesses in the system was to give more financial crack to the credit junkies who got us in trouble in the first place.
Over the past decade, many have been worried about the credit binge, but various groups defeated almost all attempts at reform. Mortgage lenders stopped truth-in-lending legislation. Hedge funds blocked increased regulation. Fannie Mae and Freddie Mac, the government-insured lending companies, avoided increased oversight by Congress. Banks and other lenders defeated tighter usury laws.
Tags: feds, Mortgage Interest Rates, rate cut
