The Root Cause of the Financial Market Meltdown
With the stinking corpses of many fallen financial institutions and the recent decline in the US economy I have been wondering where the root cause of our economic problems lie.
We have heard our candidates for the upcoming election point fingers and lay blame but no one has made clear what the true problem is. Why have these banks failed? Why is the market down so much since this time last year? Why are those on the brink of retirement having to contemplate working on? Why are people loosing jobs? And why is there so much panic and uncertainty?
If you want my honest opinion I do not think that either of our presidential candidates are prepared for what is to come. I do not think they truly understand the change that is needed to bring our country back to the place of power and economic dominance we once stood so firmly. The beauty of our country still rests in the fact that we the people have the power to insist change. I do not want to tell you how you should vote, I do tell you that your vote matters and that it is your duty living in the land of the free not to take that vote for granted. Be educated, be knowledgeable about what your candidate stands for and insist that they be clear in their intentions.
Below is an excerpt of a thesis which was written by an unaffiliated party in search of the root cause of our current financial crisis. If we do not learn from our mistakes we are bound to repeat them.
It is the thesis of this report that this large increase
in defaults had been a potential problem waiting to
happen for some time. The reason is that mortgage underwriting
standards had been undermined by
virtually every branch of the government since the
early 1990s. The government had been attempting
to increase home ownership in the U.S., which had
been stagnant for several decades. In particular, the
government had tried to increase home ownership
among poor and minority Americans. Although a
seemingly noble goal, the tool chosen to achieve this
goal was one that endangered the entire mortgage
enterprise: intentional weakening of the traditional