Subprime Crisis – Who is really to blame?

The subprime crisis that has now been present for many months and now in a full global economic crisis mutates, it seems only a polluter to have – the banks.
According to the rapporteurs of the media and especially the politicians, only the greedy investment bankers and heads of these banks to blame for the crisis. With their bonus programs, banks have recklessly led to its own dealers and have acted blindly and increasingly complex and speculative financial instruments, designed and sold. You, the banks and their financial acrobats are to blame the whole mess – or maybe not?

Who something beyond the look and makes the effort to search, you will quickly discover that it’s not so simple as the politicians like to show. Especially not in the U.S. where the subprime crisis has its origins. Strictly speaking, those politicians are now the finger at the banks show themselves to blame for the origins of the crisis. These lie in the seventies than in the U.S. the so-called “community reinvestment act was passed, the quasi-financial institutions are forcing funds to lend to people who in a difficult economic regions lived, so that they can buy a house.

During the following years in the U.S. was the property a sign of wealth and thus a symbol for the American dream. As the credits to poor people tend initially a very small proportion of the total, it was not so tragic that borrowers with bad credit loans received.

Later drove the same politicians now blame the banks, financial institutions, as well as the two giants of the mortgage market, Fannie Mae and Freddie Mac to take more and more money to lend. The politicians saw it as discrimination that poor people do not get credit just because they are poor (in our opinion, the politicians seem to have basic courses in Economics and Business Administration loan to miss). This spiral is increasingly built on and the banks lent money because they are in principle obliged and later sold these loans to Freddie Mac and Fannie Mae, which also forced these loans have been decreasing.

The only solution then these bad loans from their own books, it was to get these in the form of various debt obligations Collaterized resell. Although the banks is certainly a part of the blame, it is the politicians in the U.S. do not forget that triggered the whole mess and now the finger at any other point not only to himself.

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