What makes you qualified to have an opinion about gun control? A) Knowing the difference between a magazine and a clip, and bump stocks versus full automatic weapons. B) Ability to assemble and disassemble handguns and rifles. C) If I might get shot, I get to have an opinion.
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But we often don't need to cover loopholes, if we stick to more basic regulations. In 2007, either continuing to limit corporate leverage, or random auditing of transactions like loans, or enforcing stricter capital req's for novel products would likely have been sufficient.
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In 2007, likely none of those things would have prevented the disaster. Grossly underpredicting a price drop would kill even a portfolio of plain vanilla loans. Random audits don't fix this. Neither does limiting leverage or capital reqs for novel products.
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Random audits of mortgages and penalties for fraud on the part of borrowers and banks would certainly have reduced the size of the bubble and reduced (not eliminated) the later problems with mortgage defaults, and hence the price drop.
End of conversation
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