Breitbart.tv » Stossel: U.S. in ‘Dookie Hole’ Because of Barney Frank, Congress

Back on topic, Stossel is partially right. The banker’s greed isn’t what caused the housing market to collapse and have that negative ripple effect – it was congress/senate legislation that stripped away a banker’s normal mode of evaluating risk which caused the problem. The bankers are obligated to make money for their shareholders. If you invent crazy lending rules, the bankers are going to adapt and still try and make money for their shareholders. And bank executives are going to set up a bonus structure that rewards making money – on top of the crazy lending rules.

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