More regulation is not what we need.
All I’ve been hearing is “more regulations”. That, if only, America had regulation of financial markets, of banks, of the securities business, of the people who make up home loans. If we only had regulations that would cover everything””all of the Liar’s Loans and the Stated Income loans, and the loans where you don’t put forward a W-2.
I’m going to tell you the truth. I don’t think more regulation is going to do it. I don’t think more regulation is the answer. If anything, the government needs to get out of the business.
The banks are very good at figuring out risk. If you can figure out risk, you can figure out what a home loan ought to be priced at. You can also figure out whether you want to buy a bundle of those home loans or not.
We ought to let the financial services business run things. The government should stand back at enough of a distance not to muck things up, the way they have appeared to have mucked things up this time around.