Causes of the fiscal fiasco explained by former Dallas Fed chief

by PegNews wire

Here's a quick little Fox 4 video interview with Bob McTeer, former pres. and CEO of the Dallas branch of the Federal Reserve, who has a slick promotional website aimed at getting him speaking engagements.

With the economy tanking in spectacular fashion, Bob's probably getting a lot of calls.

Just in case you wanted to know WHY the economy was taking, Bob explains it has a lot to do with the lack of accountability on the individual lender level, which resulted in part from the Community Reinvestment Act, which mandated that banks and lending institutions offer credit, home loans and small business loans to those who might not have previously met the rigorous lending standards of traditional localized banks.

Regarding the proposed $700 billion federal bailout: Bob's all for it, characterizing the government's layout of funds as "more like an investment than an expenditure."

Makes me feel better about the whole thing. (Yeah, sure it does.)

posted by JM