Tech Support Forum - View Single Post - 84% of subprime loans between 04 and 06 were offered by private lenders

RedScott · 10-11-2008, 06:15 PM

Anyone that believes that the resent situation was brought on by lax government controls is sadly mistaken. The fact is the Federal Reserve sets interest rates artificially low during the period leading up to any market bust in order to spark economic growth, which always leads to malinvestments. No amount of market regulation is going to stop bad investments during periods of easy credit. What we are witnessing now is the result of the Feds policy.

Economic law kids.

10-11-2008, 06:15 PM	#2 (permalink)
RedScott Registered User Join Date: May 2007 Posts: 496 OS: Windows XP	Re: 84% of subprime loans between 04 and 06 were offered by private lenders Anyone that believes that the resent situation was brought on by lax government controls is sadly mistaken. The fact is the Federal Reserve sets interest rates artificially low during the period leading up to any market bust in order to spark economic growth, which always leads to malinvestments. No amount of market regulation is going to stop bad investments during periods of easy credit. What we are witnessing now is the result of the Feds policy. Economic law kids.