On the deregulation of business and the ‘08 world-wide economic crisis

On the matter of the source of the recent economic downfall, for which the States is largely culpable, I don’t understand why the mechanics of the situation aren’t talked about. There’s been a lot of talk, but most has done little to clarify the source of the problem. True, I think some of it is complex and has more than one source. Certainly, there is more to it than just Fannie Mae, Freddy Mac, and the US (although they are the catalyst). To add to the world-wide problem, the ING bank has recently received a monetary bail out from the Dutch government –to the tune of a whopping 13.4 billion! ING points the finger to the US, and insists that they continue to have a healthy business.

But let’s talk basics. As I understand it, some economic problems are due to overzealous and unethical lending of money past its reasonable point of “lendability”. Due to loosening government regulations –a sign of the cozy relationship between government and business.

If you were a bank, you wouldn’t want to overstretch your ability to payback investors/or bank clients. You couldn’t loan much more than what you have, and certainly shouldn’t loan more than you’re statistically able to give back to the client at any one time –which works out to about 20% if I recall. Lending more than feasible is not only greedy, but stupid and is a disservice to customers –and the world in general because it eventually affects everyone.