Just some thoughts – no well researched piece here!
Which 2 industries were hurt worst by the sub-prime fiasco? Financial institutions and the home builders. It just so happens that these were the 2 industries that also caused it.
Could it be that cheap labor (illegal immigrants) helped the home builders make huge profits which they then plowed back into more and more new homes and condos?
But who was going to buy all these new homes?
Well, maybe the financial institutions will be greedy enough to allow anyone to get a mortgage. Prices keep going up so where’s the risk? With “no doc” loans, even illegal immigrants can buy houses.
And with the creative financing of the big banks and investment houses, commissions and bonuses got bigger and bigger. So let’s all buy a condo in Miami and maybe one in Las Vegas too.
But wait, there’s an easy way to fix this.
The Federal Reserve can keep lowering rates so that Financial institutions can build their balance sheets back up. (Don’t worry about all those retired people with stocks and bonds).
But what about the Home Builders. Congress can pass legislation giving them huge tax breaks. And maybe tax breaks for home buyers too.
And don’t forget to bail out the deadbeats that bought houses they couldn’t afford.
Our government makes me sick. The Home Builders, Financial Institutions, and a small percentage of home buyers caused this problem. And the government is bailing all of them out.
And at who’s expense? Yours and mine. Plus we also have to suffer from resulting higher commodity prices (food, gas, coal, heating fuel, etc) and huge losses in the stock market.
Congress should not be bailing these people out, but should be holding hearings to find out how this happened. Who was at fault?
And the Justice Department should be pursuing any and every possible illegal activity that led to the financial mess. Fines and prison terms should be vigorously pursued. Go after any home builder that used illegal immigrants. Go after any mortgage broker that broke the law. I thought real estate agents like to be called professionals. Would a professional keep adding fuel to the fire? I hope every agent that broke the law also gets a huge fine and maybe a little jail time too.
No facts, but I really think that illegal, cheap labor fueled this fire. And our government needs to protect us from illegal labor. Few Americans oppose legal immigration, but the majority of Americans want the government to stop illegal immigration.
So close the damned border and let’s figure out exactly what the employment situation is in America. With the employment rate rising, cheap, illegal labor must be stopped.
And CONGRESS. Grow up and admit your mistakes. Corn based Ethanol is a total failure for all except a few farmers and fertilizer companies. It doesn’t decrease our dependence on foreign oil, but it does increase the cost of food. So stop subsidizing ethanol production – just stop it!
And stop allowing people to bet on the stock market like it is Las Vegas. If someone wants to invest in a company let them buy stock. And if they decide they no longer want the stock, let them sell it. But how do options invest in the economy? MBA’s are hired from prestigious business schools and taught to beat (gamble on) the stock market. This is not a process that rewards well run companies. No, this is a cynical process that tries to drive the price of a stock up or down for a quick profit. So what if the company is damaged. Some theorized that it was the “shorts” that killed Bear Stearns.
Make selling short illegal. Stop all option trading. Anything other than simple buys and sells are gambling – not investing!
What can we do? For starters, don’t vote for anyone with a law degree or anyone that attended Harvard. Let’s put real Americans in Congress and get rid of the elites that believe it is their right to rule over us.
Network – “I’m as mad as hell” speech