Quote:
Originally Posted by Supermans
I think you are mistaking who got this country into a mess in the first place. Do sub prime mortgage lending and Community Reinvestment Act ring any bells.. The law regulating Fannie Mae and Freddie Mac was rewritten to reduce their capital requirements, meaning they would become riskier.
"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." [New York Times, September 11, 2003 ]
Anyone remember that? Ultimately this spiraled into the housing market boom and eventual crash which affected General Motors and every car company since people's home value's were slashed in half or more and people were upside-down on their mortgages.
Now Barney still has a job and is regulating GM in his position. Go figure considering he was part of the problem in the first place.
Insanity is doing the same thing over and over expecting different results. I'm hoping the people of the US learn from their mistakes and their elected officials mistakes. However it is important to know where the "mess" started and who mostly contributed to getting our country in the "mess" to begin with. Put the blame where it is deserved and then try and rectify the problems and eliminate the waste from the ground up. GM's restructuring hopefully is heading in the right direction. I have high hopes, but it is decietful things like repaying back loans with other loans that are still having interest piled on it is disingenuous at best..
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I'm well aware of what caused this. I had a class on business ethics just last semester during the height of all this.
It's greed on the part of everyone--people buying homes they can't afford, and then hoping to sell them for more than they are worth. It's the bankers, too.
But it's also the CEO's, and I would love to see you dispute the golden parachutes.
"Hey, you did a crap job, but hey!!! Take these millions and come sit on our board!"