Friday, October 10, 2008

Banking History of the United States

"In the 1990s interstate banking was finally allowed, creating nationwide banks of unprecedented size. But Congress's attempt to force banks to make home loans to people who had limited creditworthiness, while encouraging Fannie Mae and Freddie Mac to take these dubious loans off their hands so that the banks could make still more of them, created another crisis in the banking system that is now playing out."
If you want to be among the economically and historically illiterate, then don't read the rest of Gordon's story.

Oh, and be sure to notice the moral of his story in the paragraph above, i.e., Congress has responsibility for this current crisis.

No comments: