TRILLIONS UPON TRILLIONS OF BAD LOANS is what’s causing all this... created by simple undeniable unfettered greed.
And a callow Federal Reserve Chairman who thought that it was all a great thing as part of the new economics paradigm.
“TRILLIONS UPON TRILLIONS OF BAD LOANS is what’s causing all this... created by simple undeniable unfettered greed.”
That pretty much sums it up. Operating outside the boundaries of common sense causes these scenarios.
I understand you were going for effect here... but do you even know what a "trillion" is? ...and that there are only ~350 million people (men, women and children) in the entire USA?
So, if we're to take your "trillions upon trillions" to mean at least 4 trillion loans, and that there are 350 million people living in the USA, then that would equate to more than 11,000 bad loans for each and every living soul in the United States.
That, my friend, is over the top in a big way.
Indeed that is correct and those loans were made as a result of the massive vote buying by both parties. Give every American and non-american the funds to buy a home regardless of their ability to pay it off. Democrats call it “fairness” and republicans call it “compassionate conservatism.” Also contributing to the problem was the Fed Reserve constant efforts to keep the interest rates unduly low. Since capital was paid so little for saving and investment, those with capital turned to what has turned out to be extremely risky investments in order to make a buck. Politicians responsible for the entire fiasco. We desperately need an entire new political system, one that does not depend on massive vote buying at the expense of the working American.
Exactly. Trillions of bogus triple A rated paper created by Wall Street and the rating agencies, who get paid fees to rate the bonds. That was the money factory.
Then, add in the tremendous greed of the real estate brokers, appraisers, mortgage brokers, etc. all ready and willing to cut corners and make loans from the money the factory created.
Add in the greed of the flip this house crowd, who thought real estate would forever go up, and many took unaffordable mortgages.
Now, banks and large brokerages around the world have trillions of assets on their books, and no one can value them. So, you have a credit crisis and firms stop lending to one another.
Greed, and hubris.
Encouraged by Dems on the banking and finance committee to make bad loans to deadbeats. This was caused by government involvement in the economy.