Sirs is right. The current crisis is the fault of both parties, the SEC and the Fed. I'm getting tired of hearing one side blaming the other, in the meantime no one seems to know what to do about it, other than spend money that we don't have. I was reading today that no one knows how exactly the bailout will help the economy. Isn't that kind of important before you ask for (and pass) a $700 billion bailout rescue bill? What I would love to see right now is someone, I don't care if it's a Congressman, a candidate, an economist, or whomever, to stand up and say "I know how to fix this. We need to do X and Y and Z, and this will cause A and B and C". But I think that both sides are too busy pointing the finger and trying to fling mud at the other side to stop and think about what might need to be done.
Today at work a co-worker and I were discussing the crisis and he related to me that he was having a hard time getting a loan for a washing machine. WTF? When did we as a society become so dependant on credit that we have to take loans for a fricking washing machine? I can understand a loan for a house, even a car if the borrower can afford it. I don't really see why the personal consumer needs a loan for anything else, if they're smart and planned ahead. If you can't afford a washing machine, then you need to save your money until you can buy one, or go on Craigslist and find one. During this same discussion, I came to find out that people take out loans for TV's, computers, and a bunch of other crap. This is what's going to kill us economically. Does no one save their money for something that they want anymore? And yes, I understand that credit allows the consumer to buy products that they might not necessarily buy otherwise, thereby keeping the manufacturer in business, keeping employment steady, etc. But isn't that kind of an artificial economy? It sure as hell isn't anything approaching self-sufficient.
The next area of big business that I expect to see start failing are credit card companies, for the same reason that the mortgage industry collapsed. There is way too much easy credit out there to people that probably shouldn't have it, and now that times are getting tougher I think that you're going to see more and more defaults. And we'll probably have to ride to the rescue again.
Just my $.02
