An American Perspective

I requested an American blogger-friend to help me understand the financial crisis in America a little better. Below is part of his reply posted with permission:

This economic crisis is a disaster. Basically it all started in the 90's when some activist groups started lobbying the democrats to enact laws which would make it easier to obtain loans. They wanted this done because they were claiming that there was racism on the part of the lenders.... that a black man with the same or more qualifications as a white man was being turned down for a home loan. The examples they were using to back up their case actually turned out to be inaccurate and false, but, alas the legislation had already gone through and the politicians were not going to admit that they made a mistake so it stayed on the books. Then it turned into a 'one-up' game between the politicians and banks...one would say everybody should be able to get a loan who has a job...then the other guy would say, hey! we won't even check if you have a job and you can get a loan....then the other guy would say, hey! we won't even check if you're a US citizen. Both parties are guilty, but the bulk seems to land on the left.

My wife used to work for a firm that payed lobbiests to lobby some of these senators who are involved in this whole debacle, so we know how the system works. She has since left that position....good thing too because I'd really hate to be associated with these guys and this mess. Our politicians are not working for the people of the country; they are working for special interest groups who fund them.

This certainly helped me in contextualizing the current issue. Thank you!