Does anyone have any statistics at all showing the rate of defaults on Government-instigated loans, ie, loans for minority neighborhoods, loans for the poor?
Everything I've seen places most of the blame on Brokers and Banks screwing investors by bundling junk loans into securities and passing them off as good debt; that was a market incentive, not a government program.
Yeah... For the same reason people get "rid" of counterfeit money -- it's worthless.
There's an old bromide in the study of economics;
"The bad money drives the good money out of circulation."If you create hollow debt instruments no one is going to keep it. They're going to bury it and get rid of it (ie., sell it). Who created that bad debt instrument?
Our beloved politicians did via the
Community Reinvestment Act.
I won't say there wasn't greed involved, but then again, the brokers, the bankers, the wall street traders, they didn't invent greed. And politicians are not immune from it either.
But if you think (as a politician) you're going to jigger with a free interprise system without downside consequences you're a blind @ssh*l#.