Just for the record, this crisis is a different than previous market corrections. The FED is taking measures not invoked since 1929. Lets not be fooled into thinking that this liquidity crisis is like any other normal bear market in equities.
I’m going to have to point out that the lending institutions who floated those bad loans, should fend for themselves.
If a house goes belly up, the institution can take the home back and resell it. They’ll take loses, but who forced them to make those bad loans in the first place?
The government shouldn’t be stepping in here. So what if some lending institutions go belly up. There are others. Those other institutions would simply sell more product over the next few years.
When folks take it in the shorts in the market, does the fed come through and cover their losses?
This may be the first such actions since the depression, but I don’t think it was necessary.
Where were our fine Senators and Congressmen when these incredibly destructive loans were being floated?
I know some people whose heads should roll. For one thing, the private industry types who trotted out these loans should go to prison. And those that sit on the House and Senate banking committees should be sent home as well. My guess is that at least some of them were getting donations that led them to look the other way. Aw, that couldn’t happen could it.