The financial problem in the United States can be summarized in just one single word Greed. Creating frenzied economic activity based on over-speculation with an illusion of growth while progressively traveling away from real market value of everything tangible and intangible. Well the economists like to call it a “bubble” and for good reason because it is shiny on the outside, but it has air on the inside, floating to inevitable poof.

In the 1980s, the real estate and construction bubble that burst in Japan that destroyed its economy for nearly 20 years also triggered the Asian financial crisis that rippled to Russia and Argentina in the late 1990s.

In the 1990s, again in the US, another bubble burst with over-valued stocks in Internet and tech start-up companies, a.k.a. the dotcom crisis.

The latest bubble by the name of “subprime” is basically a giveaway on the nature of these loans a.k.a. mortgages. It is ridiculous because subprime means by definition below standard. These subprime loans were only granted only to borrowers whose credit history was in bad shape on simply not sufficient to get a conventional mortgage. Following that up by squeezing these debtors in a sudden steep rise in interest rates on their loans last year gives the face of American capitalism an ugly leer indeed.

There you have it. It is all greed and we all are going to pay off for he leaked money that is now in some investor’s bank account anywhere in the world but in your local bank. It is just greed that hurts us all in the end because the country will have to enter into a depression and high inflation and unemployment. Many of us are going to suffer the consequences of theses greedy acts that will only set us back preventing us from evolving  to a better future.

Tags: , bubble, Evolution, greed

This entry was posted on September 30, 2008 at 10:21 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed.