I guess the billions of dollars the FHA along with Freddie Mae and Freddie Mac are losing, and continue to lose is not a good enough reason to look at the housing market from the other side of the coin. It is amazing how ignorant some of these congress people are. It is of my current belief, that another main reason we are in such a mess is that congress doesn't weigh the NEGATIVES appropriately along with the positives in the legislation they create. It is obvious that they do not approach anything from a realistic nor logical standpoint in Peter's testimony to congress. They decide they want to pass a bill, so they bring in several other "experts" in the field that benefit most from the government subsidies they look to create! Well of course they are going to back your plan if they are going to get a piece of the pie! Where are the congress women and men that play devil's advocate, and look at the negative consequences as well as the positive. Why isn't congress asking the tough questions along with Peter, and not asking, then ignoring his answers because he doesn't agree, and don't like what he has to say? Is it really that hard to understand why we have such large problems in this country, and can't move forward on anything, when our whole legislative process is fundamentally flawed from the beginning?
This is such a basic concept in regular business it's almost hysterical that congress acts like this. Just as Peter says, before a private enterprise is willing to embark on a business venture, to ensure success, all potential risks must be weighed, and priced in to the final product. When government guarantees ANYTHING, you completely bypass that process because who cares if the thing goes bust, the taxpayers will pick up the tab if it doesn't work out. This is why Peter emphasizes so much on the mispricing of risk. Government itself is the reason! No wonder they can't fix it, they are the problem, and would rather sign a new bill than do enough due diligence to realize maybe they just need to back off. This stuff is gonna go down in the history books gentlemen, and we are all gonna look like idiots for supporting such a silly democratic process. And this is why I cannot, and will not choose to support the choices of government that cannot make choices based on rational thought, but chooses to do so out of arrogance. This will end very badly. Revolution will come to America one day, it's the only way the establishment will be torn down and started anew. It's a slippery slope all downhill until that day comes.
