Citizens State Bank In North Dakota
Citizens are taught in school that capitalism is an economic and political system in which a country’s industrial base is controlled by private owners for profit, rather than controlled by the state. Therefore capitalism is failing for governments have poured billions of tax-payer dollars into respective banking systems in an attempt to stave off full-scale collapse, measures unprecedented since the Great Depression.
As to Citizen Joe living beyond his means—how many credit cards does he have?
The Blame Game
Unfortunately, any remedy to this crisis will not be as simple as consumers cutting up credit cards, and no doubt suspect lending practices by the banks will continue. It now seems evident that nothing short of a global financial revolution will stop this rampaging fiscal destroyer.
Most are aware of what triggered such a dire situation, in short the sub-prime lending spree in the United States dragging other nation’s banks into a credit-crunch. The banks stopped lending to each other, and to consumers. This flowed into the real economy as buckles tightened and jobs are lost. World economies begin to slow, many tottering on the brink of collapse.
In an article posted on the globalissues.org website, economic analyst Anup Shah argues the crisis could have been avoided,
“If ideologues supporting the current economics models (neo-liberalism) weren’t so vocal, influential and inconsiderate of others’ viewpoints and concerns,” he stated.
In other words, bankers proved they were as intractable as customers always suspected they were. They knew the high risk involved in sub-prime lending, were warned against it, yet went ahead and loaned the money anyway. What is in effect a mismanagement of client funds?
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