Comments on: Everything You Need To Know About Mortgage Regulation

By: lorax101

lorax101 — Sun, 01 Nov 2009 17:54:59 +0000

Hmm… there’s a lot of deregulation in there (coming from a college student who just came out of a regulations in economics course). A lot of it has to do with economic thought in the last couple decades (Chicago School of Economics http://en.wikipedia.org/wiki/Chicago_school_of_economics ) Legislators in general have relied on economists who have pointed out that the self-interest of each firm in an industry will lead to a stable market, and all governments can do is get in their way. So after heavy regulation in the 60′s and 70′s, legislators have been taking a lot of regs off the books – to point you in some specific directions of research:

http://en.wikipedia.org/wiki/Panic_of_1907

http://en.wikipedia.org/wiki/Antitrust

http://en.wikipedia.org/wiki/Law_and_economics

I’ve got some more research that you might want to do, but it’s a little more economist scholar oriented. Send me an email if you’d like to scan through it anyways.
Newspapers blaming the current crisis on "deregulation and laissez faire public policy" without specifications is just the easy thing to do – they’re the best buzzwords of the season.
References :

By: 60187guy

60187guy — Sun, 01 Nov 2009 17:52:59 +0000

1) Less-creditworthy people who weren’t able to borrow money for mortgage loans during the 1990′s were made able to borrow during this decade. This is the origin of the "sub-prime" problem.
2) Financial institutions were able to engage in more aggressive and leveraged types of speculative trading because of diminished regulatory oversight which brought about some of the meltdown in the stock market.
References :

By: James L

James L — Sun, 01 Nov 2009 12:50:33 +0000

What deregulation caused the housing bubble and financial crisis?
Everyday, the newspapers blame deregulation and laissez faire public policy, yet they never specify what deregulation actually caused the crisis. What regulation was repealed and what regulation is needed?

Do they want regulation of independent mortgage lenders? What do they propose?

Please don’t turn this discussion into capitalism vs. socialism or something like that. I simply want specifics. It is all very complicate so you don’t have to explain everything to me, but just point me in the right direction and I’ll do the research myself.