If the credit crunch is not the result of the failure of the free market system what is it?
by 
sharpjwe
ANSWERS: 4
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It was the failure of people to use their noodle before they invested in something they could not afford. The federal government encouraged banks to give out bad loans. Would you suggest that they take a greater role in administering our lives?
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I know as little about this as anyone, but we've had a capitalistic system since Hamilton and it seldom fails. However, this administration in general and the Federal Reserve in particular let things run totally out of control. One can't blame home buyers for taking any deal that sounded good. If one considers THEM "stupid" for financing through these mortgages, what's the label to be put on the financial securities that purchased these in a bundle all around the world??
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I see you have heard President Bush's speech at the G20 Summit, that was quite a silly and thoughtless statement to make. I suppose everyone is asking the same question, I don't know the answer to it but I do know what is going in the summit and all I will say is that nothing positive will be gained in said summit. Unfortunately another missed opportunity for us while Europe is 50% out of the problem and even so they have declared they are in a recession so as to apply what their constitutions provide for such cases.
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lack of regulation and greed mostly.
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