Comments much like some that are made on the political forum about the GFC indicate that there is no appreciation in certain minds of how free enterprise economies function. They (the comments) may be useful for political propaganda purposes. They certainly don't offer a path to an accurate comprehension of the fundamental cause of the crisis and, therefore they offer nothing to the task of ensuring that crisis will be avoided in the future2.
This is all very true when the blame for the Global Financial Circus (and I use the word "circus" purposefully) is apportioned to those who took out house loans when they could not afford to meet the obligations arising. These people were not the "cause" of the crisis; they were not the initiators.Those who took out loans when their financial situation determined that they could not meet the repayments may well have acted foolishly in that they were out to fulfill the "dream of owning their own home." However their dreaming was not the fundamental cause of our current problem. Their circumstance. their financial position led to the need for manipulation, the deceit, the avarice the absolutely unbelievable, unacceptable, crude, rude and and unrefined behavior of Wall Street et al. It is the financial circumstances which some individuals found themselves in and which others ignored, as well as the fact that they were sufficient in number to have an economic impact that caused our current economic problem
In the period/years prior to the economic collapse in 2007 the American economy was operating on false "principles." A healthy, growing economy it may have appeared to be, but the necessary economic fundamentals were not in place.
Take a look at the pie charts below. And ask yourself some questions - using a bit of commonsense, establish the truth for yourself. If you have any queries get back to me.
(2. I did not want to mention names so as not to offend any particular individual, so I haven't.)
