Just In case you didn't hear...

 

http://news.bbc.co.uk/2/hi/business/7651060.stm

 

House backs $700bn bail-out plan

 

The US House of Representatives has passed a $700bn (£394bn) government plan to rescue the US financial sector.

 

I think this quote from the BBC's have your say section sums it up

 

"Bush has done Al-Queda's job for them.

 

Kovan Pillai "

 

If we re-elect the politicians who passed this bill, I will have lost my faith in the American public as well. That includes McCain and Obama who supported this Bill. The huge majority was against this, not its time to see if we actually have a pubic capable of doing anything.

Well it's pretty much official now, America can't claim to have "free markets" or be "capitalist". We're a socialist state (corporatist).

 

Furthermore, we aren't really a "constitutional republic" anymore. That's a ruse.

^here is a good video on this issue.

 

[ame=http://www.youtube.com/watch?v=g35jiS_uDfQ]YouTube - Ron Paul Discussing his Bernanke Confrontation 9/24/2008[/ame]

 

Oh and the way we live now will be forever different because we can no longer have a credit society. That means, we won't be able to afford much in the future. Loans will be hard to get, thus only reserved for must haves things. The world lives in poverty because they are loaning us there money so we can buy Ipods, cars and houses on their credit and money. The world is waking up now, and the credit market in America will be very dry in the future.

 

The world will not let us have much more credit because we can't/won't be able to pay them back. I see the world economy moving on without America. Keeping us locked out because of the messes we keep creating and taking down the global economy. Our modern wealth mostly comes from other nations.

http://www.washingtonpost.com/wp-dyn/content/article/2008/10/02/AR2008100204115.html?nav=email

 

Claims that it's the fault of those borrowers of subprime loans is beginning to look a litte less credible in my mind..

Make no doubt, everyone is to blame. But the CRA is the main cause by forcing banks to give bad loans.(on average banks before the CRA was inforced only made small amount of sub-prime loans, the CRA took that number and made it grow to a size the that was dangerous to the market) Maybe in some cases people were lied to by banks to get the loans out, some cases borrowers should have known better. On that level i would assume it's a case by case thing.

 

But the CRA is the main culprit of this, 34 billion in sub prime loans in 1994, after the CRA was revised and re-enforced it shot up to over a trillion dollars in 2008.

 

Lending was started by the CRA but greed played a role in it, specially when Fannie and Freddie told the lenders they would buy or back the loans given out.

 

This all would have never happened without the CRA, it's just greed in government and banks turned it into a problem.

 

To prevent this mess from happening again we have to find out what caused it.

Bottom line is, it was greed started by bad bills being passed and the goverment getting involved....the government tried to use greed to get low income or people with bad credit into houses....noble effort but a bad idea. But the government tried to use greed to get more sub-prime loans.

[ame=http://www.youtube.com/watch?v=zHmvyjkQ-rQ]YouTube - Let's Play "WALLSTREET BAILOUT" The Rules Are... Rep Kapture[/ame]