Sub-Prime Real Estate Loans

I find it interesting that the real estate loan market issued sub-prime loans and sold them to all the big bank. These are the people who sit across the desk and tell you all the things that you are doing wrong with your finances.

It might be good for these big financial operations suffer the consequences of their desire for big profits with salary reductions, reduce bonuses, and cancellation of stock option. But a usual the dividends will be reduced, the share price will decline, and big fines will be paid to government for wrong doing. This is known at a stockholder bailout.

The saving and loan system went though the same meltdown by financing everything that wanted credit. The government (tax payers) bailed them out combining banks with saving and loans. Now were doing it again. Freddy Mac and Fannie Mae are having financial troubles resulting from misstatement of earnings.

There is to much power in the hand of a few people and/or institution. We need to clean house and have more accountability on these systems.

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