Brazilian Finance Minister Guido Mantega said that the president told the finance ministers that he was doing all he could to involve other countries in efforts to resolve the crisis. According to White House spokesman Tony Fratto, Bush acknowledged the problems began in the U.S., with a meltdown of the market for subprime mortgages in the summer of 2007. The president felt it was important to take the rare step of coming to such a meeting because the problems were spreading globally.
“It doesn’t matter if you’re a rich country or a poor country, a developed country or a developing country””we’re all in this together,” Bush said, according to Fratto. “We take this seriously, and we want to work with you.”
In response, the G-20 countries issued a joint statement in which the finance officials pledged to work together “to overcome the financial turmoil and to deepen cooperation to improve the regulation, supervision and the overall functioning of the world’s financial markets.”
I would be calmer if Bush, Congress and other incompetent folks would simply butt out and let the market return to sound principles of free market.
If Congress hadn’t required banks to loan money to people who couldn’t afford it, had prosecuted people who illegally manipulated housing prices through completely irresponsible lendning practices we wouldn’t be in this mess.
Canada doesn’t allow subprime mortgages and they are not in this mess with the rest of the world who was.
I have read so many comments about letting the “market adjust itself” – can anyone point me to a major financial crisis in which the market “adjusted itself” so I can see what that looked like?
There has to be some sinning at the bottom of the crash. What of the 7 deadly sins are in play here? Pride, gluttony, avarice/greed, sloth, envy, and maybe a little lust and anger on the side. Wait a second, that’s all seven.
“If Congress hadn’t required banks to loan money to people who couldn’t afford it” —#1
This is false, and no less a lie for being widely and persistently repeated.
http://new.kendallharmon.net/wp-content/uploads/index.php/t19/article/16800/#286920
http://new.kendallharmon.net/wp-content/uploads/index.php/t19/article/16842/#288200
This story was in our paper today:
http://www.mcclatchydc.com/251/story/53802.html
I guess the rest of the world has figured it out. They are going to have to solve their own problems. We certainly have enough of our own.
Sherri [#5]: Excellent article.
Anyone interested in the truth about subprime lending should read it.