I’ve had numerous face-to-face discussions regarding the latest economic crisis and the $700 billion bailout proposal. And to be brief, here’s my take:
All of us have gotten ourselves into this mess. Wall St. and Main St. (as they are so affectionately segregated) are both accountable and intertwined in this latest crisis.
Wall St.: I’m positive that greed exists on Wall St. As an example, how is it possible that sub-prime mortgages are a great financial product for such a large portion of America? And then, how is it possible that other investment companies would buy these as sound mortgage-backed securities?
Main St.: I’m positive that when consumers see a deal, no matter how fine the print or how too-good-to-be-true, we’ll bite at it. As an example, I can just picture a new homeowner saying, “You mean I only make $50k annually, but you’re going to give me a $400k mortgage at a low rate? Great! I know the housing market will continue to grow and I’ll just refinance in a few years.”
It’s time we all take our own medicine and learn from each others mistakes. Let’s be our brother’s keeper, recognize our faults in materialism and living beyond our means, and work together to resolve this crisis.