Government! The Real Reason For Economic Disaster

By admin | July 17, 2010

With the government passing a brand new set of guidelines for actual rules that will be written by government bureaucrats over then next year or so, that could include anywhere from 120 to 600 new rules for businesses to use and report on. I thought it might be good for people to get a detailed explanation on what happened that originally caused the economic collapse that got us to where we are right now.

I have no doubt that you have been told it was greedy corporations making bad loans to innocent people that didn’t know any better. But the truth is that it was government regulations that required these financial institutions to give loans to people with less and less means to pay for those loans.

These rules where enacted by the congress and presidents over the past few decades and were carried out through Freddie Mac and Fannie Mae. Of course this recent bill does not address either the politicians fault in creating the rules that made the crisis, or does it in any way change the rules at Freddie or Fannie that not only perpetuated the situation, but actually made the crisis a reality.

Below is a great video and slide show that walks you through the entire story from how a few people not paying their mortgages could lead to government rules that created the collapse. It is a long video, but if you want to actually be able to discuss this issue intelligently you should be willing to take the time to learn about what your going to discuss.

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