Check out an excellent article in the latest issue of
Business Week on the Bush Administration's and the financial industry's involvement in the mortgage crisis which is at the heart of the unravelling of the entire financial system. After you have read this article decide, what do you think?
http://www.businessweek.com/magazine/content/08_42/b4104036827981.htmIt was only last week that a friend of mine told me how the entire mess started with the excess cash available in China and India that they were begging to invest in the U.S. As a result the U.S. financial industry created esoteric derivatives. Then she went on to say "but I've no doubt we will be blamed for the crisis." Just because there is excess cash does not mean that we should have created what I consider fradulent transacations.
So, yes we are to blame and who will pay the most for this is the countries whose populations are living on the brink. It is unforgivable. The good news is that perhaps we will change drastically the way we view capitalism which would give our ecosystem a chance to recover. Unfortunately though I think it will take five hard years for the financial system to recover as no one is talking about the next major shoe to drop: unpaid credit bills. Many jobs will be lost, less money means we will drive less, buy less, and live more within our means because we will be forced to. many people will be forced to downsize the size of their houses which will save a lot of oil in heating them. Of course, I acknowledge that those folks at the bottom of the economic chain will suffer the most for they don't drive, buy little and do live within their means, but most of us don't. This could lead to a more healthly life style for all.
There is massive resentment in the U.S. at this time, as there should. Perhaps folks will step back now and reconsider the notion that there is no end to growth, because I have always believed there is. A moral I live by is "just because it is available, does not mean that it is the right thing to do." As to our upcoming elections, I would ask our candidates to focus on the crisis rather than mud slinging. This is unappropriate and unappreciated at this time.
Check out the 20-page section in the latest Economist on the World financial meltdown.
http://www.economist.com/specialreports/displayStory.cfm?source=hptextfeature&story_id=12373696 The picture at top is from this latest edition.
