"The government of the United States is a definite government, confined to specified objects. It is not like the state governments, whose powers are more general. Charity is no part of the legislative duty of the government."

-- James Madison (speech in the House of Representatives, 10 January 1794)

Wednesday, September 24, 2008

Government hangover

Much of the problem comes down to US government 'anti-redlining' legislation, which forced institutions to lend to people in parts of town where the local property market was bad collateral. Lenders knew they'd have to comply or face regulator's retribution. Unfortunately they also meant a lot of 'sub-prime' debts on the institutions' books.

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Presented for your consideration by POAST at 9:53 AM

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