The banks did their part because they were pressured under the Community Reinvestment Act (by Congress and community organizers) to lend to borrowers who could not repay. Even a child knows such a system is doomed.
The free market system was injected with a huge infusion of socialism...and all we are left with is another example as to why socialism doesn't work.
But not to worry, after the foxes raided the hen house and killed all the hens...our country was stupid enough to elect the most "audacious" fox president.
If drastic action is not forthcoming shortly, our "goose" is cooked too.
Actually the CRA was a very small part of the problem. The Banks invented and sold these defective loans world wide out of nothing but sheer greed.
Those same too big to fail Bankers also donated to obama and acorn and our Fed knew six months before we were let in on the secret that they crashed the world’s economy. Those same big banks got a two fer they got to wipe out a lot of their competition our small American conservative banks.
They should have been allowed to fail that’s what capitalism is all about. Instead we bailed out obama’s backers I have no sympathy for those big banks what so ever.
For instance Ireland’s whole problem is the banks.
Ireland’s Fate Tied to Doomed Banks
Up to €50 billion—nearly $50,000 for every household in the Emerald Isle.
But unlike Greece, Ireland is a relatively wealthy country, with per capita GDP of nearly $38,000. That’s 21 percent higher than per capita GDP in Greece, and in the top third for European countries. Low corporate tax rates and a skilled workforce have made Ireland a haven for some of the world’s biggest companies. And its public debt, about 65 percent of GDP, is far below Greece’s crushing load, which is 126 percent of GDP. Ireland’s debt levels are even lower than those in France, Germany and the United Kingdom.
A failed banking sector that Ireland’s government can no longer rescue on its own. Ireland is in the midst of a real estate bust that could trump even the ruinous downturns that turned parts of southern California and Nevada into suburban ghost towns, with home-grown banks stoking it all. Now, those banks are trying to manage catastrophic losses. The Irish government has effectively nationalized the nation’s biggest banks by guaranteeing their debt, which would be akin to the U.S. government taking over Citigroup, Bank of America, J.P. Morgan Chase and Wells Fargo.
That means the Irish government is also on the hook for the losses those banks endure—which have risen far beyond initial estimates, and may have a lot farther to go. So far, the Irish government is obligated to cover losses amounting to 175 percent of Irish GDP
http://finance.yahoo.com/news/Why-the-Irish-Crisis-is-Going-usnews-4028366968.html?x=0
Barack’s Wall Street Problem is Now America’s
http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/
JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats
http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html
JPMorgan Chase Asked to Stop Funding ACORN
http://nlpc.org/stories/2009/09/15/jpmorgan-chase-asked-stop-funding-acorn
Editorial: Bailed-out banks should stop funding ACORN
http://washingtonexaminer.com/opinion/2009/04/editorial-bailed-out-banks-should-stop-funding-acorn
US embassy cables: Mervyn King says in March 2008 bailout fund needed
http://www.guardian.co.uk/world/us-embassy-cables-documents/146196