reply to post by jsobecky
jso, you said it in one sentence, and seemed to gloss over the point....you said that bad lending practices led to this disaster...true.
But, in that same sentence you implied some sort of fault should be laid on the borrower of the mortgage. When, in fact, the entire system was
corrupt, though they didn't know from the left hand to the right hand.
POINT: A person wishes to own a home. Having little to no money down, barely able to pay, is nevertheless allowed the mortgage. Which is promptly
sold to someone else, and 'bundled' with other such risky mortgages, then sold again....and possibly AGAIN!
See, this was basically a 'legal' Ponzi scheme. (Just Wiki 'Ponzi' if the term is unfamiliar).
However, this process one-upped the traditional 'Ponzi' method, because the waters became so muddied, with all the goings-on...it is almost
impossible to dis-entangle the bad guys from the duped guys.
Well....if I only have to invoke the name 'Bernie Madoff' to get your attention, then perhaps we can begin to realize how the scam worked.
In Bernie's case (his name is pronounced "Made-Off", BTW) he (and he alone...well, he and his associates) sat at the top of the pyramid, the
'Ponzi Scheme'. The mortgage melt-down was the result of many, many well-meaning and honest people who simply got caught up in a de-regulated
miasma of greed....and, here we are, today.
THIS is why I fear for the concept of Capitalism. I'm not advocating Communism, nor Socialism. What I fear is the excesses of ANY system...when the
HAVES trample on the rights and priveleges of the HAVE-NOTS.
Allow me to expand...it is a common bit of Hubris, here in the USA, to imagine that anyone can emmigrate to this Country and become a self-made
millionaire. We have ample history of this....BUT it is OLD history!!!
It is an idea, from the past, based on concepts that are now, obsolete. The new way to 'wealth' is different. The old way was through the
Industrial Revolution....100 years ago. Now, it is the age of computers, and technology.
Call it, the Technological Revolution.
Well, just as, a century ago, there was upheaval, and resistance to change, so it seems to be happening again now.
Capitalism built MUCH of the Western World, during the last century....yet we see greater and greater disparity of wealth and opportunity throughout
the World. WHY???
Communism? FAILED Socialism? POSSIBLE-FAIL
Capitalism? POSSIBLE-FAIL
Maybe we need a new term, some combination that will work for the entire Planet.