Financial Crisis commonsense answer?

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Was it more the unethical exploitation, non-regulation and the turning of heads by people in power who knew it was a time bomb that would lead to global markets getting infected by “bad loans”. Everyone knew what was happening, the practice continued. this suggests regulation had dropped and these “bad” loans were shuffled in to global markets intentionally. Regulation of OUR financial markets is the administration’s responsibility, therefore this crisis is a baby of this administration, planned.. what’s next.

Or

Was it the bill itself, making it possible for lower income even welfare recipients able to get a mortgage. Was it the poor that caused global financial turmoil?

1 Comment
  1. Reply
    I wanna know for sure
    January 29, 2011 at 12:33 pm

    A little of both. You can blame the Alt-A loans on the poor, because those people did not have a steady source of income and probably fudged the numbers on their loan applications. But the subprime loans can be blamed entirely on the system. Those people were too poor to hire a lawyer who would tell them that their payments would double within six months of purchase and that their house is worth only about 70% of what they’re paying. The failure rate for both kinds of loans is about 2.3%.

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