@ Skybird.
I blame the problems of America's financial system on "credit"
credit was originally something that was extended to businesses way back when.
Then the banks got the bright idea of extending credit to every day ordinary citizens, who saw it as a way to get what they want now and pay for it later.
I blame the problem on the fact that very few Americans have a good understanding of how credit works. specifically young people.
I had to explain to 4 or 5 people my age that you cant just pay the "minimum payment" every time and expect to pay off your debt. - they seriously had no understanding of that.
I also blame the financial problem on "predatory lending".
I'll explain
Banks dont make money by lending you money... they make money off the interest rate of lending you money. thus... banks WANT to lend money. the longer the term of the loan the less your minimum payment... but the interest will be a larger portion of your payment.
17 and 18 year old kids who dont fully understand this graduate high school and apply for college.
and in comes a torrent of credit card applications through the mail.
when i graduated high school and began applying for colleges, i must have received 100 credit card applications in the mail in a matter of weeks.
these kids get the credit cards, and max them out and the bank now owns these kids and they are reaping the benifits.
another problems.... home loans.
anyone who has watched TV or listened to the radio in 2006 - 2007 knows this to be fact.
all the ads about getting home loans with no social security number required, you dont have to speak english, no downpayment, zero interest for one year etc etc etc.
who do those ads target?
illegal immigrants, newly weds, young couples looking for their first home.
so whats the problem with that?
a $200,000 home becomes very affordable ... for 12 months, then the ungodly high interest rate kicks in and your payment doubles.
you discover you cant afford your house so you try to sell it.
problem is that almost every person who purchased a house in 2006 and 2007 is in the same boat so the housing market is flooded with homes for sale that cant sale!
then what happens?
foreclosures - record foreclosures.
and the predatory banking system is standing there missing hundreds of billions of dollars in money that has not been paid back. (what did the dumb asses expect?)
so that is the reason that when i was looking to buy a home in 2007 i would be driving through neighborhood after neighborhood of foreclosed homes.... ENTIRE communities on the outskirts of dallas, Texas - simply abandoned! it was like twilight zone. it was like a home buyers buffet.
my guess is that the financial crisis in america - and perhaps the world could be blamed squarely - on less than 20 individual people.