Yeah, that explains Bear Stearns, Lehman, AIG, Wachovia, Wamu, what could end up being 50% of hedge funds, MMFs, MetLife, Prudential, regional banks, Citigroup, BofA, Countrywide, sovereign wealth funds, etc.
If this was all about subprime lending then the amount of money put into the system would more than account for the mess. As it is, we don't know where the bottom is. It was the securitization of those mortgages and the unregulated disconnect between risk and reward that blew this up into a global problem.
It is also fraud pure and simple. It is fraud largely on the part of the lender including real estate agents, mortgage brokers, loan officers, bank management, etc.
30 years of Reaganomic screwups led very directly to the financial mess. The USA kicked out high paying manufacturing jobs in return for the fiction of a paper economy. This country made a hard right turn and we are still paying for this mess. Wages don't keep up with inflation, it takes two incomes to support a household, debt of all kinds is at record levels. This problem didn't start two years ago, it is 30 years in the making...it is Reaganomics come home to roost.
Don't forget the Republicans masquerading as Democrats. Without them this Congress would have done much more to get us back on track.
Are you actually trying to forget that Bush has been in the White House for 8 years? Congress has largely rolled over and played dead for him...now you want to blame Democrats in charge of Congress for a few years and ignore the executive branch entirely?
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