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View Diary: Don't Throw Sergeant VerSteegh from His House (27 comments)

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  •  some people don't want the federal govt to act (0+ / 0-)

    which is their democratic right. but that's not an argument that the federal government can't act.

    •  Checks and balances (0+ / 0-)

      The Fed can always act, but it will not pass the scrutiny of the courts and it shouldn't.  The Federal Government should not legislate an issue like real estate anymore than telling each state how to fund their schools.  It's none of the Fed's business how schools are funded or how foreclosures are managed.

      the fed should have stepped in when Fannie and Freddie asked for the authority to rgulate subprime, but we had a Republican administration and Congress, so Freddie and Fannie were both told "scope/mission creep" and forced not to regulate this issue.  And now, we're in the mess we're in.  Most of the issues now being dealt with aren't legislative, they are regulatory and you already know that Bush didn't want to regulate the industry.  Giving the executive branch more ability to regulate this issue by Congress acting isn't going to actually do a damn thing.  It certainly isn't going to help any of the states deal with the rise in foreclosures caused in part by "liar" loans, poor credit risks or the lack of income for many of their state residents.

      But, hey, keep telling yourself there's an easy answer and that Congress can just legislate a solution. It's not true, but maybe it makes you sleep better at night.

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