rcraig

What Just Happened?

I don't get it, the media eats up this sort of stuff. After all they are in the business of entertainment. If you don't believe it take Jim Camer for example, he is the biggest clown on TV, a pure entertainer with no common sense or memory (or banks on the bet that the views don't have a memory) or realization of what kind of panic he can stir up on Wall Street.
from what I can tell, the over regulation by Congress was the cap on the ice berge that cause it to tip over. What ever rationalization Congress had behind their forcing banks and lenders to provide loans to people who couldn't afford homes in the first palce was a bad idea. The logical action would to have place a cap on real estate values and the profits that big buildres were making on the self financing and sells of homes that can't weather natural forces any better than a straw home built by the Three Little Pigs. You add the esclating cost of real estate to the transfer of responsibility for shoddy home to the insurance industry and you have the perfect financial storm without Congress forcing the banks to sell home to people who can't afford them.
After all the medium price of the average home kept going up higher and higher while the average blue colar income remained suppressed. You would have though the homes that were being built were intended for the blue colar worker. So how could hey afford them if the price kept climbing while their income stayed relativly fixed. What idiots in the industrial sectors were in charge along side Congress and their crazy regulations. Mind you I am not an economics expert, but how can anyone in any industry ignore the core basis and factors that make a company profitable and disregard the stress factors that could cause them to fail?
I guess ther is no law against collective stupidity. Let's all suffer with the morons.