Because just about everyone is to blame.
Republicans opened the door through debt-based credit derivatives and deregulation. Democrats further contributed by turning a blind eye to Fannie and Freddie and insisting that even those who couldn't really afford mortgages be allowed to get them. The Bush Administration touted consumer spending as a means to boost the economy, and encouraged reckless consumer behaviors with billions in “stimulus”money, all while fueling the national debt through a disastrous war and tax cuts for people who don't really need them.
And, of course, greedy banks and mortgage lenders went along, doing their best to bilk whoever came through door for whatever they could get — before passing the risk on to equally greedy investment banks and hedge fund managers. Consumers came along for the ride, abandoning reasonable financial practices and using credit to fuel materialism — as well as making poor decisions by buying homes they couldn't afford with “creative” mortgage financing.
Nearly everyone shares some of the blame. This is not the time to bicker over who is most at fault. It doesn't matter. The past is past. It's time to move forward and fix the problem. REALLY fix the problem. With practical solutions (that's right, follow the link for just one alternative — and better IMO — solution) that don't involve throwing a large, arbitrary amount of money at the problem.
This is something that requires measured thought. And a change in how our society now views debt, money and the economy. There's no reason to rush into a bailout plan right now. Instead, a little more analysis is needed.
Tags: stock market, Wall Street bailout, financial crisis, spending,
economy, investments, Bush Adminstration