LogFAQs > #889490718

Balrog0 posted...

darkjedilink posted...

The 2008 financial crisis was literally caused by government intervention.

Under Clinton, the government mandated that banks offer loans to sub-prime applicants as a way to boost minority home ownership.

The sub-prime mortgage fiasco actually disproves your point - there is no profit to be made by loaning money to people who can't repay, so banks refused to do it en-masse until the government forced them to.

it really has more to do with interest rates providing easy credit to banks and the way they securitized and traded debt than the specific asset market which turned toxic

That's more an issue of "private gain, public losses" cronyism than anything else.
Democrats set it up by mandating bad debt and providing a means to offload it, Republicans made it worse by baling out the banks that didn't offload enough bad debt.
If anything, that's been the working model of government for the past seventy or eighty years. All that changes is that sometimes the actors swap places. Government creates a disaster, then makes everything worse by trying to fix it.