Do you know about - Peter Schiff - Austrian Scholars Conference Part 4 of 8
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Peter Schiff - Austrian Scholars Conference Part 4 of 8 Tube. Duration : 9.85 Mins.We had a good read. For the benefit of yourself. Be sure to read to the end. I want you to get good knowledge from Mortgage Interest Rates Today . For the latest Peter Schiff, go to PeterSchiffBlog.com - Nobody questioned the AAA ratings. No one thought that housing prices could ever fall. In hindsight, everyone wants to blame the lax lending standards. However, no one wants the prices to go back to normal. They all want to maintain the bubble prices of real estate. Now that the bubble has burst, all the blame has gone to the free market. There was too much greed. Bush said that Wall Street got drunk. But why were they drunk? Who gave them the alcohol? Alan Greenspan did with all of his cheap monetary policy. Everyone is greedy all the time. It is our fear of loss that prevents us from being too reckless. But the regulations create moral hazards. The market regulates all of these things far better than any set of official regulations. At one time it was questioned whether Fannie and Freddie were going to be backed up by the government. It explicitly said on the bonds that they are not backed by the United States government. So they could have let them fail. If anything needed to be tightly regulated, it was Fannie and Freddie. Fannie and Freddie gave legitimacy to the subprime market by buying so many of the structured products. Most of the bonds were rated AAA. It was nonsense - the appraisers have an incentive to rate things highly. The people who were giving the loans didn't care whether the mortgage got paid back. They knew that they would be selling them off. One of the reasons that all of the banks would have ...
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