Stop the Blaming for Subprime Gaming – Market Corrections Will do the Economic Taming

Should the Federal Reserve or United States Government bail out foreign banks, high-risk mortgage banks and quick real-estate flipping investors? No risk, no gain was the battle cry all the way through the top of the real estate pre-bursting bubble. Of course, in saying this, these folks on all sides of the game knew this was much less about an “ownership society” as it was a windfall of profits. In fact we all know that what goes up must come down and the fa├žade hit the floor and now we see it fell through the foundation – scary stuff indeed.The Sub-prime lenders took the risk to lend money to folks with little or no money down and it is certainly not the government’s or the FED’s responsibility to bail them out. Many of those who took out these loans were an investor class of citizens who bought the properties on speculation to flip houses as the relative home prices sky-rocketed and this strategy was working well for everyone for a number of years.Foreign banks also got in on the action and now things have raveled apart and the rope bridge collapsed, but whose fault are these defaults? Should the US or the FED bail out foreign banks who invested in such markets?No, says the Online Think Tank. The Federal Reserve should not be involved, rather they should monitor the entire system to protect the economic stability of our monetary system. This concept of “Never Fear the FED is Here!” must not be an invitation to continue such high risk plays. Risk and reward scenarios must be observed to protect free markets and not build foundations on sand beaches as CAT V Hurricanes approach-eth. Sincerely, Lance.

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