McCain Blames Greed for Recession | All American Blogger
Rated • 1 review • politics • allamericanblogger.com
A great deal of the blame for the housing bubble is more the byproduct of congressional meddling than it is corporate greed. Several congressional committees put pressure on lending institutions to make loans more accessible to people who would not otherwise qualify for those loans. In order to avoid increased government regulation many lenders complied, and the demand for homes increased dramatically. This increased demand drove prices upward outpacing the growth in the rest of the economy. When the rest of the economy saw slowdowns because of high energy prices the housing bubble began to collapse.
So what can we do about it? Bail out homeowners who got caught? The lenders who got stuck with Billions of dollars of losses in bad loans? Let them all sink or swim based on the decisions they made? If I had the answers to those questions my paycheck would be considerably bigger. But one thing is certain. If Corporations like Meryl Lynch, Citi Bank and many other lenders go under because of this, the effects will be felt in nearly every 401k, IRA, and Pension Plan out there. If you think the economic problems we face now are bad, the consequences on the retirement plans could make this seem like the good old days.
It never ceases to amaze me that the body that writes law for the most litigious nation on the planet could understand so little about the law of supply & demand.
So what can we do about it? Bail out homeowners who got caught? The lenders who got stuck with Billions of dollars of losses in bad loans? Let them all sink or swim based on the decisions they made? If I had the answers to those questions my paycheck would be considerably bigger. But one thing is certain. If Corporations like Meryl Lynch, Citi Bank and many other lenders go under because of this, the effects will be felt in nearly every 401k, IRA, and Pension Plan out there. If you think the economic problems we face now are bad, the consequences on the retirement plans could make this seem like the good old days.
It never ceases to amaze me that the body that writes law for the most litigious nation on the planet could understand so little about the law of supply & demand.
