Originally Posted by AChimp
The recession will continue as long as the government keeps trying to prevent it from happening. It's just prolonging the problem and will make things worse in the long run.
It might come as a surprise to some, but stupid people are incapable of managing their finances and there are a lot of stupid people. It just so happens that the stupid people also happen to be the most vocal about how it's not their fault that they're stupid and point fingers elsewhere.
The banks need to crank the interest rate UP and let everyone who's going to go bankrupt or lose their home face the consequences of their past decisions. If you're uneducated or have no employable skills and only make $25,000 a year, no, you should NOT be living in a $350,000 house just because the bank gives you a "no-down-payment, 2% interest for the first two years" mortgage.
It's funny because banks around here(Alberta) and in Ontario(so far) check just about every single aspect of your financial situation before you can get a loan from them, and I've heard that there are minimum wage mcdonalds employees in the U.S, that are getting mortgages, and having them default, which leads to reposession, and screwing out of the bank thousands of dollars.
The only way the financial situation would ever be fixed, is if the American banks take a lesson or two from the Canadian banks, and check assets more, as well as stop having politicians throw your money around just to cover up the fact that it's the american people's fault. Somehow, I just don't see that happening, and they'll be knocking at Canada's doorstep just to stay afloat.
lets just hope China doesn't call in their debt, or the United States is finished.