A key contributor to the housing bubble and then collapse was a government piece of regulation called the Community Reinvestment Act. which regulated banks into issuing more sub-prime loans to low income lenders so that the people can have “affordable housing”. In addition, the government sponsored enterprises Freddie Mac and Fannie Mae were buying those loans from banks in order to allow them to easily issue more, with implicit government guarantees against failures, which encouraged more risk taking.

In the early and mid 2000’s the Bush Administration, Congressional Republicans and Fed Chair Allan Greenspan, were pushing for regulating and reigning in Fannie and Freddie practices. (Essentially regulating the government.) But those efforts encountered strong Democratic opposition and were blocked.

Democratic Senate Banking Committee members Barnie Frank and Chuck Schumer are on record claiming that there’s nothing wrong with Freddie Mac and Fannie Mae and that their continued activities are important for providing housing to low income families.

So to sum up, socialist policies in government encouraged the very activity that now the socialists are blaming private enterprise for.

And you will please note that China, whose banks are federally run, didn’t have a financial meltdown, only the capitalists.

You really lose me when you use China, a murderous, corrupt, oppressive, nation, where most people live in abject poverty and slave labor conditions as an example for good economic practices. I suppose that to the socialist brain it all makes sense.

Oh, and since when has the US had a Laissez-faire economy? Even the founding fathers had economic restrictions (tariffs, no slaves in certain states, some women and child labor laws).

I didn’t make any reference to the US ever having laissez-faire economy, but as long as you ask, laissez-faire, does not mean no rules or restrictions whatsoever.

p.s. Marx > Smith

Socialists would not go into a closed door deal with crooked banks to negotiate how much of the workers money they needed to stay alive and on top of the social ladder.

Says who? Socialists are just as crooked and self centered as those they are supposedly trying to replace. This is a fundamental reason for why socialism doesn’t work. Benevolent leaders are few and far in between if they exist at all.

We had financial regulation for a VERY long time in this country and it functioned pretty well, by DEregulating we put ourselves in a situation where crooked loans and bets on these loans could manifest.

The notion that financial regulations were the cause of the current recession is a myth. The crooked loans were sponsored and encouraged by a piece of government regulation called the Community Reinvestment Act. And they were facilitated by government sponsored enterprises called Freddie Mac and Fannie Mae.

You seem to be missing some basic tenants of socialism, such as:
-NOT SUPPORTING CAPITALISTS
-SOCIALISM IS BOTTOM UP NOT TOP DOWN(meaning it needs to come from the people, not the government, to be successful)

And the only thing the above can imply in a way that’s implementable on planet Earth is Laissez-faire Capitalism where the government is only involved as minimally as possible in running the government.

We had financial regulation for a VERY long time in this country and it functioned pretty well, by DEregulating we put ourselves in a situation where crooked loans and bets on these loans could manifest.

You seem to be missing some basic tenants of socialism, such as:
-NOT SUPPORTING CAPITALISTS
-SOCIALISM IS BOTTOM UP NOT TOP DOWN(meaning it needs to come from the people, not the government, to be successful)