Who are they saying is to blame for the financial crisis??? Really???

@jerzgirl (7820)
Gloucester City, New Jersey
October 6, 2008 7:53pm CST
Before you buy into all the bull flying around about who began this fiasco, maybe you ought to read this. Nothing is EVER as simple as the finger-pointers would like you to believe. Anyone who believes that doesn't remember the childhood bully who picks a fight and then blames the victim when he gets caught ("he started it!") - unless they were the bully themselves. http://www.phillyburbs.com/pb-dyn/news/327-10062008-1601391.html So many are blaming the CRA law for the problems, yet it wasn't until certain financial institutions were REMOVED from the restraints and protections of that law that the problems began. And, who do we have to thank for that? Read on, MacDuff! So, have you been affected by this chaos? Do you have a 401K that suffered a serious blow or did you manage to transfer those funds temporarily to a bond fund that is more stable until this blows over? Do you invest outside your 401K? Maybe with a personal money market account? Have you taken a hit? Talk about it.
3 people like this
6 responses
@ZephyrSun (7387)
• United States
7 Oct 08
We haven't actually looked at our 401k accounts and honestly I don't want to either. Sad as it may sound it will just depress me. Our accounts have lost money ever since 2002. I don't know exactly what we are going to do with the accounts.
3 people like this
@jerzgirl (7820)
• Gloucester City, New Jersey
7 Oct 08
Well, I hope you didn't take too much of a hit. I learned an interesting thing yesterday, though. It seems that Lehman Brothers who was NOT included in the bailout and were refused help by the Feds has George Bush's cousin George Walker on the executive board. (Apparently, the name George is quite popular in the family.) I can't help but wonder if that is why he refused to help them. It wasn't mentioned in the article I read, but at the same time, it was the only failing institution mentioned with a family member on the board.
1 person likes this
@ZephyrSun (7387)
• United States
7 Oct 08
Well from what I have heard from different Left hosts the Lehman Brothers was the competitors of Goldman Saks and I think we all know who use to work for them lol
1 person likes this
• United States
7 Oct 08
I am ignoring the heck out of my 401k right now. I do not want to tempted to sell. The prices are cheap right now and they WILL go back up. We are no where near retirement so I figure it has time to go back up. Til then, stock prices are low. If you have the money it is a great to time to buy if you looking for the long term. With this ecomony, the problem is having the money. We have had to cut back on how much we are putting into our 401k to help make ends meet. As for who is guilty . I think all of them are to blame to some level or another. From our elected officials to the corrupt corporate america. Now we are bailing them all out. Makes you feel warm and fuzzy huh? They take our money to stuff their pockets and cause this mess, now the government is giving more of our money to bail them out. Someone is making a lot of money off this mess. You can bet it is not the average American either.
3 people like this
@jerzgirl (7820)
• Gloucester City, New Jersey
7 Oct 08
You have a good perspective on your 401k. You're younger and have time yet. I'm not and others like me aren't, so we have to decide, do we save what there is or do we hope for the best. I'd prefer to save what there is and then shift it back over when things are level again. Not necessarily priced high again, but at least no longer plummeting.
• United States
7 Oct 08
I think we all "started it" with our obsession with credit, and our obsession with buying outside our means(houses, etc). Predatory lendors helped. The banking industry helped. Some politicians helped. But few are without blame. No one person or small group of people are to blame.
3 people like this
@jerzgirl (7820)
• Gloucester City, New Jersey
7 Oct 08
Hi Dan. I agree. I responded to #2 with a longer description of how I weigh the blame. I can't put percentages on it, but I do think it weighs more heavily at one end than the other.
@bobmnu (8160)
• United States
7 Oct 08
I would suggest you look at this link as it is written by an person with an economics background and he traces the crisis back step by step. It is a long article but very good and very detailed. There is not one person or one incident that can be pointed to as the cause. It is more complicated than that. http://hubpages.com/hub/Blame-Washington---Not-Wall-Street-for-the-Current-Financial-Crisis?utm_source=fanclub&utm_campaign=evite&utm_medium=email As for my retirement accounts I am buying more now as I feel that the market will be going up in a few months and I hope to get in on the bottom or near the bottom. I don't hope to get rich but to improve myself.
@suspenseful (40326)
• Canada
7 Oct 08
Ah the blame Bush scenerio. What caused this crisis was not that Bush opened the way to make loans to poor people and taken away the regulations (possibly because the Democrats made such a stink that he had to. If someone tells you that you do not care about the minorities esp if they happen to be black, what would you do? Say no? And let people think you are a racist?) They could have given them loans and made it with payments that they could afford, maybe have thirty year mortgages, introduced sweat equity so part of the mortgage was paid if they helped fix up someone else's house, but it started long ago when the Democrats said they had to give loans to people on base of race and ethnic group, not because they were poor. There are two people the loan giver and the loan taker. If the loan taker cannot afford to buy a house he should not do so, and if the loan giver knows that he should not tell him to.
@jerzgirl (7820)
• Gloucester City, New Jersey
7 Oct 08
Thirty one years ago, banks were told they could not discriminate against someone who was credit worthy simply because they lived or wanted to buy in an area they had "red lined". BUT, they had to be credit worthy. The same rules applied, but the banks could not use geographic areas as part of the criteria. Then came the last eight years. Certain financial institutions were told they were exempt from this law and others were given permission to merge that hadn't been permitted before making speculation on mortgages possible. The CRA was not a bad law. The elimination of being held to CRA standards WAS a bad idea. As for Democrats convincing Bush of anything - even his own party had a hard time keeping reins on him. He did want he wanted, come hell or high water. And he would never bow to Democrats if his life depended on it. That's not the GWB Way. However, the questions I asked at the end of my discussion were what I wanted to know more than anything and you didn't respond to them. Do you have money in money market or 401ks that could be effected by this and did you do anything to protect it?
@ClassyCat (1214)
• United States
7 Oct 08
There are many things that have contributed to this, and it's a combination of many things, and situations. The more we can lay aside our political differences, and finger pointing, and unify as a nation, the better off we'll be . I know that sounds impossible. But I believe we need to at least do the best we can. This situation hasn't just affected us - but the whole world. That makes me wonder if we're not seeing a 'wake up call' from the portals of Heaven - - not so much that God is in it, but that we all need to realize that the more society by their passing laws to 'get God out of the affairs' of the nations - - He is obliging us, and just letting us see how smart we are "not." I do believe if we can possiblly hold steady - - we'll see this thing turn around, but not without going through some scarry and perhaps leaner times, before we get to the better side of it. And lastly - I would ask all of you that believe in prayer - to pray for our governmental and economic leaders and advisors, that they receive wisdom and ideas to further bring a solution. And - - let's think about contacting our representatives in government about starting to teach children in school, about economics. Most kids don't know how to even balance a checking account, or write a check. Younge ones just think you can have anything you want anytime by just using the credit card and writing a check, where there's always plenty of money - right?
7 Oct 08
The economy is affected by so many things that it is impossibl to just blame it one one thing. Three things stand up as prominent in leading to the current mess- 1) people using credit to live beyond their means,2) dodgy mortgages and over valued property (especially in the UK) and 3) a very expensive war which is bound to affect the UK and US economies. Neither will reduce taxes, nor will the government cut their own rather large salaries to try to understand how hard things are for the general public. On the plus side, things will pick up. The economy is a fragile thing and will always have highs and lows. I don't have to worry about my money taking a hit as I don't have more than the protected limit in the UK anyway. Hope noone takes a hit from the recent crisis.