You can’t blame Goldman Sachs. They make risky loans, collect big $$$ when they pan out, the taxpayer covers the loss when they don’t. They would be derelict in their duty to stockholders if they didn’t take that deal.
The real problem is government bailouts. It would be a very different story if the companies had to take the loss on bad loans. Either the company goes out of business, or the exec who oked the loan is out on his rear. Either way is much better than escalating bailouts. I believe Clinton started the tradition, and Bush continued it.
Even worse, Clinton signed laws requiring certain kinds of bad loans (to poor minorities), Obama worked as a lawyer to enforce those policies on banks.
You can’t blame Goldman Sachs. They make risky loans, collect big $$$ when they pan out, the taxpayer covers the loss when they don’t. They would be derelict in their duty to stockholders if they didn’t take that deal.
The real problem is government bailouts. It would be a very different story if the companies had to take the loss on bad loans. Either the company goes out of business, or the exec who oked the loan is out on his rear. Either way is much better than escalating bailouts. I believe Clinton started the tradition, and Bush continued it.
Even worse, Clinton signed laws requiring certain kinds of bad loans (to poor minorities), Obama worked as a lawyer to enforce those policies on banks.