The proposed $700 billion bailout is “dangerous, inflationary, unnecessary, and unconstitutional,” funds left-wing special-interest groups, ignores less costly ways of propping up financial markets, and fails to consider regulatory reforms that might reduce the need for a bailout.  It’s not clear why we should trust federal officials with $700 billion to buy up bad loans, without any clear standards or judicial oversight, given that governmental incompetence and government regulations (such as affordable housing mandates) helped spawn the mortgage crisis.  Many economists oppose the proposed bailout.

But some lending practices are…

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