Should the US Government subsidize homeownership even more?

[chequita guevara]

It means I wrote something, posted it, and decided it wasn't worth the electrons, so I deleted it

[Saras]

The reason that there isn't enough money for available for investment today is because there was too much money available previously for investment. That is the inherent insanity of capitalism, when it produces too much, the system fumbles (or worse). That is why I'm a communist.

That is the insanity of yankee central banking, not capitalism per se.

[chequita guevara]

That particular instance, yes, but the general point, when capitalism is too productive, that's when it collapses, is the main point.

[Saras]

Capitalism does not collapse, prices do. Capitalism is more than prices.

[chequita guevara]

Factories close, businesses shut down, the economy contracts, people lose their jobs, homes, and lives. That's a collapse.

[Darius871]

Factories close, businesses shut down, the economy contracts, people lose their jobs, homes, and lives. That's a collapse.

"Collapse" has a connotation of permanence though.

[Victor Galis]

I'm not going to put any effort into disproving something as stupid as the idea that S&P, Moody's, and Fitch are owned by MBS originating firms. If you want to keep believing obviously false things, be my guest.

I believe the conflict of interest he's implying exists, the claimed ownership does not. The ratings agencies were paid by the originators and thus had incentives to give them favourable ratings.

What needs to be revised is the fee-generating mechanism of ratings agencies and their incentive structure. Right now, nothing but their reputation suffers if they screw up, but reputation is in large part relative. If all the major ratings agencies screw up royally simultaneously and in the same way, it doesn't hurt them as much as if one screws up a bit and the others don't.