[cryptography] Digital cash in the news...

Nico Williams nico at cryptonector.com
Mon Jun 13 01:39:15 EDT 2011


On Mon, Jun 13, 2011 at 12:12 AM, Randall  Webmail <rvh40 at insightbb.com> wrote:
> That's right: POOR PEOPLE caused the Current Unpleasantness!  The people who pushed the Liar Loans and the alleged people who packaged those into securities and the alleged people who gave those securities AAA ratings and the alleged people who sold those AAA securities and the alleged people who bought those AAA securities and so on are completely blameless.   POOR PEOPLE caused the financial crisis!

Who said anything about poor people?  Just because CRA and Frannie
were sold partly as programs that benefit the poor doesn't mean that
was either the actual intention, or the effect.  The people who pushed
liar loans did it in large part because there were large incentives to
doing that, which were mostly a result of not playing with their own
nor their bosses' money, but with funny money, since no matter what
loans they made there was always a ready buyer in Frannie, backed with
a ready lender of last resort in the Fed.  Yes, people who made funny
loans committed sins, but they wouldn't have been able to (not in the
same scale anyways) without the larger, more original sin committed by
the politicians (who did it in the name of the poor, or whatever).  IF
Congress had created an above board $100 billion/year housing subsidy
for the poor, that wouldn't have led to a bubble, and it would have
helped the poor much more than the actual, hidden $100 billion/year
housing subsidy did.  If you care about the poor you won't defend CRA
and Frannie blindly.

Nico
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