In the long run, I think there is a chance that the Treasury Dep’t. will actually make some money selling all these defective instruments they will buy up from the banks so the economy can get back to work. I think there is also a chance that everything the treasury ends up absorbing is pure junk, and that generations to come will end up paying for the last 8 years for many years to come. Time will tell.
But who is to blame for this mess? I think there is much blame to go around.
1. George Bush financed two wars on the credit cards instead of making the Iraqis pay for it.
2. Allen Greenspan made money cheap and advised banks to get that cheap money into the communities to stimulate home sales to folks who would normally not have been able to get a mortgage.
3. The Congress failed to oversee the activities of FM/FM, the Bush administration and the Fed.
4. The housing industry failed in due diligence when making these loans.
5. Most of all, individuals failed to monitor their own finances. Americans who should have realized that just because someone will extend credit doesn’t mean it should be taken. But self-control is not a baby-boomer trait, and we have certainly not passed it on to our children, or their children. We’ve heard all our lives that we are entitled to the American Dream. Nobody mentioned that previous generations had to work for it.
And so now we must share in the burden, whether we as individuals were responsible or not. Let’s pray that the worst that happens is that we and generations to come will end up paying for this party.
By the way, I never did get my invitation. Come to think of it, I never got the one to the Reagan party either. Maybe this time, we will learn from our mistakes. Naaah…