[cryptography] Digital cash in the news...
James A. Donald
jamesd at echeque.com
Mon Jun 13 05:31:54 EDT 2011
On 2011-06-13 2:57 PM, Nico Williams wrote:
> I don't think it's fair to blame private financial
> institutions for the ill-effects of an ill-advised government plan to
> subsidize housing ownership by individuals. Without Frannie, CRA, or
> anything of the sort I don't think we'd have seen the degree of
> financialization of housing that we saw, meaning that we wouldn't have
> seen the home mortgage credit growth that drove the housing bubble,
> thus neither the bubble nor the crash. (Well, bubbles can happen
> without the help of the government, so let's say that the likelihood
> of such an immense bubble would have been pretty low without Frannie
> and CRA).
All the bad things the private sector did, it also did with commercial
real estate. But the commercial real estate bubble did not cause a
massive crisis. A lot of commercial real estate loans went bad.
Financiers ate them. That was that.
The difference was Fannie, Freddie, and the CRA.
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