Quote:
Originally Posted by FRPLG
EVERYONE was responsible. Banks, legislators and regular people. We all share in the blame on this to varying degrees.
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Right on.
The banks were stupid enough to make sub-prime loans to people that they knew couldn't afford them in the long run, and the people taking the loans were stupid enough to do it in the first place. It's rampant greed on the part of everyone involved. As much as people want to bitch about the high-paid CEOs, there should be equal bitching about the idiotic people who took these loans in the first place. It takes two to tango - the banks share half the guilt.
Now the federal government is forced to step in and start fucking with the market. It terrifies me when the government suddenly owns 80% of one of the largest banks in the country.
There really is not "good" solution to all of this - it's robbing Peter to pay Paul, we're just trying to figure out which one to rob and which one to pay.
I CPA that I'm good friends with says that he thinks the best solution is for the government to repeal a substantial number of the corporate taxes that are in place for about two years. The lessened tax burden allows the banks to recover and start backing their own loans. It's more of an easing of the pressure than a bailout. Of course then you have to deal with decreased tax revenue for two years which is it's whole own problem.