Lenders knowingly gave fat loans to borrowers they knew were bad risks. Borrowers lied on their applications, and took on loans they knew they couldn’t afford. Brokers sold on packages of these loans they knew were bad deals. Our governments knew their tax income was based on a credit boom.
Nobody did anything about it.
When times are booming, the City screeches ‘Free market economy, less regulation’! When times are bad, they cry goes up ‘Bail them out, bail them out’!
Western givernments are rewarding failure with taxpayers money. They are beggaring us to prop up the bankrupt. The children of the ‘Me Generation’ have no tolerance for any hardship, and less sense. The problem here is loss of confidence, and government initiatives can’t fix that; they can only cause one-day rallies.
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If you think a horse is lame, reducing its price won’t make you buy it.
So what should be done?
Let there be a depression. Use our wealth to stop people starving, but let dud companies and vain investors fall. Then true value will remain.