[P]eople (a) paid no financial penalty for reckless driving, (b) paid little attention to the mechanical quality of the cars they purchased and (c) private insurance companies operated on faulty accident statistics
The exposition of this idea in the post is entertaining.
Link
The post ends:
Without the GSEs, the circumstances of the collapse would have never developed. Fewer of us would have cars and we would pay higher insurance but the cars we did have would be mechanically safer, we would drive them safer and our auto insurance could pay out if we had an accident. Instead, our political impulse to get something for nothing has led us to the financial equivalent of a nationwide pileup of rust heaps driven by meth-crazed teenagers.
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