Weather you beleive me or not, I don't care, I have been an active member of my local tea party, since last Feburary. We are made up of Republicans, Independents and conservative democrats. The one thing we all have in common is the sky-rocketing deficit that we will be passing on to our children and grand-children. The debt is un-sustainable.
For your information- about the mortgage crisis meltdown. This is what happens with government regulation and intervention. It is Business's goal to stay in business to grow and prosper. Anytime the government gets their greedy little sticky fingers into the mix, it royally screws up everything and anything. This is why we are in staunch oppostion to a government take-over of 6% of our economy in health care.
Free Money Finance: How the Subprime Lending Meltdown Happened
You can try to blame regulation for the meltdown but you would be wrong. I have had discussions with analysts, and people who were in the thick of the meltdown. A lot of what was wrong was the lack of regulation since it had been taken off beginning with Reagan, going through Clinton, and Dubya.
If you think the meltdown was bad, if there were no regulations in the first place then it would of been far worse.
As for the debt being un-sustainable, according to whom? Just about every nation has become a nation of debt and will continue to be in the long run. Everyone seems to owe money to someone else. You want to talk about problems? How about a $1 trillion dollar year military budget and yet for the longest time we could not get our soldiers out there in the battlefield body armor?
As much as you would like to blame Government regulation, in reality it's the lack of regulation, the lack of pinpointing where our problems are, and the lack of people taking responsibility which is our problems.
As much as you and your merry band of tea party people in some cases may think the solution is the barrel of a gun, you would be wrong. You want change? Stop supporting the same assholes.
And while you may feel you are supporting "independent thinkers", you are not. All you're supporting is fresh faces with old and tried ideas.
Oh you have talked to an analystObviously an analyst who does not know anything. Banks are not going to loan money to people that can not show a solid means of paying it back. They won't be in business long if they do that. You are not going to loan large amounts of money to someone you think can't pay you back. You will be in the poor house if you do. My point is, that it was regulation and good intentions on the part of the government that forced banks into a situation that they themselves would not have chosen.
I had the opportunity to meet a former executive from City Bank, he was about 90 when I met him. He was astonished at what had transpired with the mortgage crisis and told me that when he was there, mortgage loans were the most SECURE investment that anyone could make. This was before the fair housing act and the community reinvestment act took place. What the government does not want to understand, because they think that it is unfair. There are many people who should NEVER be home owners and they should never have been from the get-go.
Now, credit is so tight, banks are not loaning money even with great income and great credit and an assurance that they will be paid back. They are scared to death to do what they have always done, finance the private sector. That's why Obama is out there giving them hell for not lightening up and loaning money.