The Financial Crisis—How'd We Get Here, and What's Next?
The resolution of the banking crisis could be back to the future, Vernon Hill writes.
Reader Comments
Vernon Hill's article
I am not sure why Mr Hill wrote this article. It lacks any information at all. It is a poorly worded summary of what we already know. I see interesting thoughts or ideas. it appears to be a overly simplified summary of events to date that could be written by a High School student. Please don't insult my intelligence I expect more information such as to define what is meant by a "shadow banking system." Who are the "Wall Street Masters of the Universe?" What company do they work for? What led them to think that these mortgage backed securities would be a endless stream of wealth? Was it an honost mistake or downright corruption?
I expect more out of a CEO from Bankcorp. Or am I to beleive that when it comes down to it, everyone in finance is clueless?
Ed
What Crisis???
Credit is flowing steady from what I'm seeing, as long as people don't have bad credit they shouldn't be having any problem. Is this bailout so bad credit risks can get credit???
Bailout or Socialism?
I fail to see how a communist idea (US Federal Government ownership of personal property disguished as buying up the "bad debt") is a good idea to cover up the failed socialist experimentation of the Community Reinvestment Act. As usual, things break faster, harder, and more deeply with Federal assistance -- especially when normative economics enters the rationale such as with the CRA. How about we release the pressure on the credit system with massive reduction of government expenditures instead of taxing me twice as is the case now. Once because of the reduction of my home value and the second time when I have to pay more taxes to fund the "bailout" which is yet another wealth transfer. Transfering wealth from those who can manage their finances to those who cannot -- or maybe were never expected to do so.
See no reason for the bail out
The fact that credit is more expensive does no make it unobtainable as our Politicians keep claiming. It just makes it unnattractive to the banker lobbyists the Politcians are listening too.
Credit has become more expensive and by numerous econimists have theorized that without doing anything we are looking at a 1 to 2% decline in GDP and a 1 or 2% increase in the basic rate in the credit markets. That is no emergency or crisis to me.
