“So the government has to vet every security before it can be sold? That could require a few hundred thousand additional government employees. “
Nothing more than they did for DECADES when we had a stable banking system. It doesn’t take much. I saw what Countrywide was doing - loans at 10X income. I shorted them, big-time, now my wife drives a really nice car - and they paid for it.
It really wasn’t that hard and they did it for DECADES, until about 10 years ago - then they trusted the bankers.
I'm sorry, are you under the impression that there was no bank fraud and then suddenly, the government stopped “watching and regulating” and then there was fraud?
There have always been scumbags trying to defraud people. In the case of Lincoln Savings and Loan, it looks like a bunch of the scumbags were convicted.
I saw what Countrywide was doing - loans at 10X income.
How was that caused by the government no longer “watching and regulating”? What was the Countrywide fraud?