Velshan

Corporate Fraud + Government Intervention = Bailout Nation

You can blame the people who borrowed money and later found that they cannot pay due to loss of job or inflation or the non-arrival of expected pay rise.
Or you can blame the Banks who "borrowed" huge amount from Fed at very low interest and issued such loans without even proper vetting of clients (in sub prime loans - no details of employment and earning history were provided). Not because they hoped for repayment but simply to show "growth" to the stock market and shareholders. And of course can claim better salary package for the wonder kids of the Board of Directors.

Or you can Blame Fed who issued this funds to Banks at such low interest rates and allowed the rapid uncontrolled bad loans to common people thru credit cards and other loan issues.

What is real problem is that there is something seriously wrong with America. Fed reacted to that problem, Banks reacted to that problem. And common people reacted to that problem. And SOLVED the problem by spending. Because that is what the Government kept saying. Don't worry, keep spending. All will be alright.

The truth is our Financial Giants borrowed much more then they lend to our common people. They invested in huge industry building in China and Vietnam and around the world. Now they find that they cannot recover the money from this investments. Worst the output from this investments cannot be sold in America because American earning power has been stagnant and actually in real terms has been reduced.

To allow for the continued sales of their good from China and other investments, they gave away cheap credit to American people to spend. BUt for how long? what is next?

The real problem is our back boneless corrupt politicians (except Ron Paul ie.)