A Lesson To Remember: The Cause of Our Financial Meltdown

This has to be noted periodically because the Obama administration, Congress and most of the media keep repeating misrepresentations.

Our recent financial meltdown can be outlined as follows:

One: The Fed’s monetary policy made money too cheap.

Two: Congress for years, pushed home ownership for those who could not afford it,

Three: Congress permitted Fannie Mae and Freddie Mac to take enormous risks to facilitate their populist action.

Four: Rating agencies licensed by the SEC gave questionable mortgages a AAA status.

Five: Investment bankers were thus able to sell Collateralized Debt.Obligations (CDOs) and forms of derivatives.

Six: Government-anointed financial experts allowed the value of those assets to be artificially valued downward under psychologically depressed, fictitious market conditions until the financial patients were practically dead.

Then the populist bureaucrats and politicos in government pointed fingers at the “capitalists” accusing them as being responsible for the mess.