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This week’s argument in the North Carolina Supreme Court over the scandalously lax practices of major banks when it comes to foreclosing on people’s houses provides a powerful reminder of this simple truth:

The “genius” of the market frequently amounts to human beings acting greedily, lazily and immorally (and getting rewarded for it). Obviously, this can occur in government and nonprofit settings too.

This is not to say that market capitalism can’t accomplish amazing things; it’s a remarkably powerful (and frequently positive) force for the creation of wealth. But, utlimately, it is just that — a tool that human society should harness and use — not, as the market fundamentalists contend,  some kind of divine creation to which we should all bow down.

Strong consumer protection laws are one important way to make market forces work for the many. Let’s hope, as the Charlotte Observer editorial board argues this morning, that this case and others like it spur Congress to act accordingly.    

 

(Note- Sarah Ovaska has much more on this in this post).

News item from the NYT:

“The Department of Justice and four states on Monday filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation’s second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011. Read More