You hear it every day , the American people were charge happy fools who ran their debt up till the busted the system..NO THEY DIDN'T. The major contributor to the debt explosion was home buying, which drove the prices up and up..Now this runup had several player, the government which tried to up homeowners ship as a goad (Bush) which encouraged banks and mortgage brokers to change their lending rules (lowered the standards )(no the government didn't order this) they did it to sell mortgages they could package into all kinds of fantasy packages they sold to the world buying puts so when the package failed they made a ton of money...
The people were sold the story that housing prices would go up for ever and now we know that was not true.. probably never was... I would never consider my house as an investment but that's what they were selling...Lots and lots of folk were sold equity loans on houses they owned (old folks) with loans loaded with traps that caused them down the road to loose their houses...
Now you hear the story that consumers have lightened their debt load like good little consumers..Truth is the debt reduction is the defaulting on mortgages..
Now the FED is putting 40 billion a month buying up Fannie and Freddie loans to lighten their books...This is just a guess , in month to come Fannie and Freddie will buy up more junk still on the banks books.
TO BORROW A FEW WORDS (THERE YOU GO AGAIN).
ReplyDeleteBUSH NEVER CAUSED THESE THINGS IT WAS THE
DEM.CONTROLED CONGRESS WHO WROTE THESE BILLS
AND BUSH BEING AN APPEASER CHOSE TO MAKE THEM
HAPPY-----JOHN