Housing has always been a crucial issue. And now it has even become a controversial one. So here I’d like to share my view on the subprime mortgage crisis and its socially influence.
The last two weeks have witnessed remarkable economic upheaval in United States—Lehman Brother’s bankruptcy, bailout’s failing to pass, and it’s really hard to predict what is going to happen in the future. Maybe it’s a little bit difficult for us to catch up with all the overwhelming information. If we step back a bit, we will see that the whole unpopular episode was started by the Treasury taking over Fannie Mae and Freddie Mac—two giants in ensuring mortgages in United States.
Last two years, real estate bubble also appeared in Shanghai and Beijing—two major cities in China. But it wasn’t as devastating as what is happening here. The subprime mortgage crisis caused series of problems, and it’s not over yet. If nothing changes, another crisis is inevitable. So it is meaningful to ponder over who should be responsible for the mortgage crisis and how government’s decision will affect current economic condition.
What’s your reason for wake up in the morning?
6 years ago
3 comments:
I, for one, am afraid of what will come from the government setting a precedent of bailing out the banking industry. Do we really want the government to control more functions of our everyday life? In the past outside sources, such as JP Morgan, were the ones to save financial industries. If the financial crisis now is so global why haven't any other outsiders stepped in?
I agree that government's intervention cannot be a long-run solution. And maybe that's why the Treasury didn't save Lehman Brothers. I believe the key is to figure out why this happened now and here. And then we can fix the system and prevent such economic crisis happening again.
I'm really sorry to hear that, r.c..I understand normal people sacrificed a lot in this crisis, though some made great profits. I agree that government should pay same attention to houseowners as to Wall Street. I hope government will come up with an effective way to solve this problem.
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