Via a post on HBL I learned of this article written 8 yrs ago and how forboding it was. Regarding the mortgage mess it could have been written yesterday. It takes a detailed look at the history of the Community Reinvestment Act (CRA) and its impact on the housing market.
It also shows how disastrous the morality of altruism and its requirement of sacrifice is so destructive of human values. Being sacrificed were the profits of businessmen, their shareholders and investors. Thanks to the Fed's implicit promise to bail out any company who fails, the homes and futures of thousands of Americans who would lose those homes to foreclosure and whose taxes will pay for the bailouts are now also being sacrificed.
Whenever you hear some congressman or senator or governor make altruistic pleas for sacrificing businessmens' profits, remind him of the housing mess caused by that same intention and that intentions don't mean squat in this world. Facts do. And when their intentions hurt people as they are now, these people need to be opposed.
I agree with Harry Binswanger and Yaron Brook, this collapse is the failure of a regulated economy. It's time for laissez-faire capitalism