When I was Assistant Secretary of Housing-Federal Housing Commissioner cleaning up the last housing and mortgage bubble bust, I used to have a deputy who said “FHA is where mortgages go to die.” That’s because the banking and mortgage industry would intentionally perpetrate fraud and engage in unsound lending practices. Then, when the market turned, they and their investors would keep their profits and would simply put their mistakes back to FHA and the government. Well, check out this morning’s announcements. Here we go again.
Worried Bankers Seek to Shift Risk to Uncle Sam
By Damian Paletta – Wall Street Journal (14 Feb 2008)
3rd Quarter 2020 Wrap Up: Visions of Freedom (104 pages) 
2nd Quarter 2020 Wrap Up: The Injection Fraud (132 pages) 
2021 Annual Wrap Up: Sovereignty (232 pages) 
2nd Quarter 2021 Wrap Up: CBDCs - Why You Want to Hold On to Your Cash (144 pages) 
1st Quarter 2021 Wrap Up: Take Action 2021 (104 pages) 
Sure the federal government should absorb the risk, why that way, no one ever has to learn about proper risk management and they can be as fast and loose while trying to make the big gains as they want to be.
I think that this whole situation just stinks! If I open a business and make poor business decisions, I can’t call up the government and say, hey the market has turned on me, please give me some money and let me try again. I have to go out of business.
Why should big banks be immune to failure? It certainly would clean up the pirating…errr.. banking industry if they were held accountable for their mistakes