The worst financial crisis since the Great Depression has everyone looking for a fall guy, especially when the U.S. tax payer has to foot the bill.
While Main Street loves to blame fat cat executives asleep at the wheel as they collected multimillion-dollar bonuses, or lax regulation by government officials, turnaround specialist Wilbur Ross suggests we all look in the mirror. And oh yeah — don’t count on the history-making bailout plan to be a magic pill.
In fact, Ross warns that none of the moves announced by the U.S. Federal government — from the rescue of insurer AIG and mortgage giants Fannie Mae and Freddie Mac to the $700 billion financial bailout proposed to aid the mortgage market – actually address the true problem on Main Street: It’s no easier now to for Middle America to meet their mortgage payments. And the failure to pay housing bills is what caused this whole crisis to begin with.
It all paints a rather dire forecast for the rest of this year and well into 2009. For his part, Ross said he sees a current recession in the U.S. lasting through 2009. If you’re willing to stomach more bad news and find out just how we got here — click on here
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Scapegoat for credit crisis? Look in the mirror: Ross
Posted by: Ed Tobin
Tags: Restructuring
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2 comments so far
I dont think finding the scape goat is the real solution to the problem … what needs to be seen is how to enable the middle class people pay their mortgages there by enabling them to have a proper living standard…
I really think the problem is more deep rooted than just bailing out a few banks etc …
http://vikramsjourney.blogspot.com/
- Posted by Vikram NaikThe only answer to all this is unfortunately obvious: cancel all debts by inflating or eliminating the US dollar–print more or new money. I see no other way out that would be politically acceptable. In other words, there is only safety in hard assets like gold and silver.
- Posted by Matthew Millard