Forum Post: Let's be technical

In my opinion, in order to evade another economic downfall, where the ones who pay are the American taxpayers, the US government must make noticeable and strong efforts on placing stricter regulations on banks and their fellow rating agencies. For instance, rating agencies shouldn't be allowed to rate any sort of investment vehicle without government auditing. In addition, having the same bank sell "bad" and eventually un-payable debts as CDO's (Collateralized Debt Obligations) and then bet against them through insurance companies should be illegal. It creates an incentive for banks to further give out loans that would they know would be defaulted in order for them to cash in on on their bets against those specific debts.