Is the Government Mandating Incompetent Banking?
2nd March 2015
For years, I heard from my friends in the banking industry that the government was requiring them to make bad loans. They could stand it, on account of Freddie and Fannie taking the risk off their hands and transferring it to the taxpayers, at least as far as mortgages were concerned, although the bad loans didn’t end there. We all know how that turned out.
Dodd-Frank, legislation that was passed ostensibly to prevent future financial collapses, in fact institutionalized bailouts and bad banking practices.
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Banking is increasingly intertwined with government. We are steadily approaching the national socialist ideal in which all industries, while nominally private, are subordinate to government.