Why Congress totally sucks

Goldman versus Congress

So, Congress has decided that Goldman Sachs caused the real estate bubble by securitizing bad loans. Goldman, according to Congress, should have known that buying loans from originators using stated income mortgages was too risky.

Really?

Fine. Let's blame Goldman. Let's not blame the consumers whom defrauded their mortgage brokers. Let's not blame the originator, the mortgage broker and the local bankers that helped these consumers defraud the system, a group of money-chasers that created an entirely new mortgage system built on fraud.

And, what about Congress? If it was so obvious that stated income loans were so bad, what took Congress so long to act? Why weren't 'smart' members of Congress at least making this an issue, even if there wasn't enough public concern? Robert Schiller, a well known real estate expert, for instance, was loudly warning everyone that the real estate bubble was going to pop. Why was no one in Congress listening?

Likewise, how many in Congress, or their friends and supporters, made money off the mortgage industry and stated income loans? It is now a fact that one of President Obama's friends, and campaign contributors - in addition to Goldman Sachs - was making such loans and now that bank - owned by his family - is out of business. Yet, he's still running for Congress and taking no responsibility.

Certainly, Goldman might have been wrong, but so was the ENTIRE mortgage industry, along with Congress. Almost anyone making money on the mortgage side of the real estate boom in the last 5 years or so, made money defrauding the system.

Let's blame Goldman, but there is far more blame to go around, and a lot of the blame should go directly to Congress for leaving such an absurd loophole in the mortgage industry in the first place, since it was so obvious, according to Congress, back in 2005.

On the other hand, it was well known that many members of Congress wanted a more open mortgage market, a market many friends of Congress were getting rich off, even though the system was based completely upon fraud.

Congress can blame anyone they want, but eventually much of the blame must go back to Congress itself.