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If You Play Ball With the Government, Expect to Strike Out

March 7, 2009
Ben Shapiro
3/4/2009

 

government-without-lawsThis is the story of a bank. It wasn’t one of those irresponsible banks that rode the subprime boom until the bottom fell out. It was a bank that hedged its risks, a bank that made sure its balance sheets added up.

That bank was called Bank of America. And certain government officials are now talking about nationalizing it. What happened? Bank of America got in bed with the government.

Starting in January 2008, Bank of America, which had zero subprime exposure, decided to step in and buy Countrywide, a company quickly spiraling out of control due to its heavy emphasis on risky mortgage lending. Bank of America saw an opportunity to write off Countrywide’s losses and use its resources for the coming refinancing boom.

The story continues …..

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