Why such "loose" permissions?

[Michael Hipp]

Net Llama! wrote:
> As for why, i can't say, although i think that's just the default umask
> that Redhat sets.  You can certainly change it in /etc/profile, or
> somewhere like that.

I wasn't asking how to fix it, I was attempting to ask why does Red Hat 
set it so loose by default?

Is there some good reason for it? Or is it a (misbegotten) attempt to 
make everything open and easy with minimal regard for security?

Just wondering ...

Michael