Credit Crisis

The Credit Crisis began with the “Dot com” bust that supposedly forced the Federal Reserve into lowering the interest rates causing wall st. to borrow endless amounts of money and then proceed to loan it out to irresponsible citizens that were completely in capable of paying back their mortgages. Bankers themselves though are unwilling to admit their mistake and fork over the necessary funds to pay off the debts they’ve collected.
The Federal Reserve made the first and biggest mistake when they lowered the interest on loans and investments to just 1%. This drove the investors away from the reserve and in search of new safe investments. It also brought the bankers in to loan out billion upon billions of dollars, where did all this money come from exactly? The Federal Reserve printed it out of course, inflating the economy by doing so, why? To make a few extra bucks, and it only cost them the economy as a whole.
The next mistake was made by brokers that sold sub-prime mortgages to people who wanted to live the American dream, but was in no financial position to do so. But they sold the mortgages anyway, thinking they could sell them off before they defaulted thus passing the problem off to someone else and making themselves a pretty dollar. But their little scheme came back and bit them where it hurt when hundreds of thousands of homeowners defaulted, most because they couldn’t afford it but some also who were sick of making payments on something that was worth maybe only a third of what it was now worth. With this investors lost their trust in the bankers, refusing to buy any Collective Debt Obligations because even the safe ones were too risky to put their money on it.
Finally bankers stubborn attitudes and unwillingness to pay for the less then brilliant decisions they made is not solving any problems, it only delays any possible solutions. The N word (Nationalization) is only spoken of in whispers when it should be openly embraced, sure its not exactly what this country was built upon but none of these ideals will matter when we are unable to feed our people or protect them from any eager nations waiting for the US economy to fully crash, when they will be at their weakest point, and then they will strike. What will your free economic ideals mean when your countries defenses crumble upon themselves, what will that say about a free economy? They will say that it failed and Communism was the better form of government, that at least tyranny was stable enough to hold itself together.
In closing I would like to say that the absolute largest factor of this crisis is greed. Almost all of these mistakes were made in an effort to exploit someone else and take their money. If people would just be satisfied with what they had then the federal reserve wouldn’t have loaned money to banks that couldn’t afford to pay them back, bankers wouldn’t have sold mortgages to people who couldn’t afford a cardboard box let alone a house. But all they thought of is, “ if I can just get this to the next guy ill be safe, it’s his problem now.” You’re wrong, it’s our entire problem and we all need to step up and fix it, it wont be easy but it is still possible.