Friday, December 26, 2008
One new theory I heard put forth the other day was that this entire down turn start when financial institutions were forced by the government under a quota system to give mortgages in lower income areas where the odds of getting paid back were slim. Say the normal percentage of mortgages in that area was 20% yet in the more affluent area next to it, it was 60% they were told if they didn't even the percentages even if they weren't good mortgages they would face government censure or excess regulations. In addition none of the financial and real estate geniuses ever put together a financial model of what would happen if real estate prices went down. It appears that never occurred to this braintrust. Add into that energy prices skyrocketing. Our government (both parties) worried more about the work forces and the standard of living of citizens in other countries then Americans and giving away our jobs by not offering tax incentives for companies to stay yet making it attractive to move jobs out of the country NAFTA for example Brazil and China with Most Favored Nation Status to name 2 more. Also not increasing duties and VAT on imported items to keep the cost the same as made in America.I don't care what party these people are in all the incumbents whose retirement and medical is set for life with 1 election need to be voted out of office and real and true Americans who put America first elected or we better start applying for foreign aid from China or Russia.