10 Steps to the 2007-2008 Financial Crisis

I came across an excellent article on the 2007-2008 financial crisis today. It was written by Robert Stewart and is titled,”The Crisis in 10 Points“.

Mr Stewart apparently wrote the article to help explain the issue to board members of various boards he sits on.

However I think it is a great article that we should all read so we know how we got in this mess.

The most frightening point for me was point 7,

  • The egalitarian policies of government through such legislation as the Community Reinvestment Act of 1977 “persuaded” lenders, Mafioso style, to lend to low-income borrowers, against their better judgment. Government lawyers made it clear that the consequences of failing to meet politically imposed targets and quotas could be dire.

It is worth noting now governments actually own much of the world banking system and will stop at nothing to avoid failure to engineer a financial recovery, no matter what the cost.

Leave a Reply

CommentLuv badge