Roxxxanne wrote:The market really worked well in the mortgage meltdown.
Yes it did, but I guess that depends upon how you define "working."
If you define "working" as everyone accumulates increasing wealth and no one loses any, clearly it didn't work.
If you define "working" as allowing people to make stupid and ill informed decisions without any possibility of consequence, clearly it didn't work.
If you define "working" as an ideally self-regulating system able to shrug off the unintended consequences of externally imposed regulations, clearly it didn't work.
There weren't too many liberals complaining about how the market worked when they were buying houses they couldn't afford, and consumer goods that only 2nd and 3rd mortgages could finance.
Obviously it wasn't just liberals who got caught up in the fervor, but they seem to be the one most loudly blaming the market for what was essentially an inevitable correction.
Saying the market didn't work as respects the sub-prime mortage situation is like saying nature isn't working when wildfires burn up thousands of acres land surface, including a large number of homes.
The casting of people who are now losing houses they never should have bought in the first place, as blameless victims is classic modern American liberalism at work.
Were there less than scrupulous lenders trying very hard to convince these folks that they could afford these houses? Yes, of course, but as with any con, success depended upon the greed and willing suspension of disbelief of the Marks.
The old adage that if something looks to good to be true, it's generally not, is as valid today as it has been for hundreds of years.
Another symptom of modern American liberalism(MAL) is the implication that all of the victims in any given disaster have a child's mentality and are incapable of appreciating the dynamics of risk and the possibility of malfeasence.
And yet, MAL also tries to tell us that the paranoid conspiracy theories of some African-Americans relative to the government's role in the AIDs epidemic is understandable if not, through some sort of Bizzaro quantum physics, actually accurate.
The market worked. That some people found themselve with the short end of the stick does not prove otherwise.