The Problem We Are In
Sometimes it is hard to get a good handle on why we are in the economic trouble we are in. But this article dating back to 1999 talks about the beginning of the problem. It happened when we failed to allow sound economic policy to govern our activities and instead decided to allow people to have loans that could not pay them back. And then we are surprised when they can't pay them back? It seems the bigger government gets and the more involved they get in our lives, the worse things seems to turn out. For years America was the strongest nation in the world because of our free market economy - which we want to export to the world. But then our government insists on gravitating toward more socialistic principles.
This article even predicted what we are going through. Read this:
"In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's."
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Love to hear your comments on this.
