Friday, September 19, 2008

Greed, Imprudence and Living Beyond One's Means

Friday, September 19, 2008

Greed, imprudence, and living way beyond one’s means. It doesn’t take a Wall Street genius to figure out that those three are what lies at the rotten core of the US financial crisis. For instance, why would people get loans that they obviously wouldn’t be able to pay back? Is there an iota of logic behind the NINA loans? Why would lenders lend money to people who evidently cannot afford to pay their mortgages? Why would insurance companies like AIG and Lehman brothers insure these bad investments by offering credit default swaps without having the adequate capital reserves to ensure that they can pay their insurance obligations? Why weren’t these insurance-like credit default swaps not subject to federal regulation? What were all these people thinking?


Anonymous said...

"There's a sucker born every minute."

Just think how many people believe in triune and transubstantiation. :)

Angeli said...

well, it's called f-a-i-t-h, or so they say. :)

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