the termite in the housing sector is one of the biggest problem. first of all, people love over valued houses when they know that they cannot afford it. why would you take a million dollar loan and pay $3,000 a month when your family income is $1,500 a month. thats plain stupid, then they blame the banks for "PREDATORY LENDING". if you're about to take a big step in life such as buying a house, i expect you to seek advice from people who knows more about finance if u don't. don't just go trust someone who is endorsing a loan. another problem in the housing sector was the people who cause the value of a house to go up, the "FLIPPERS". they buy a brand new house and flip it because it's not of their taste. spending money and using loans in the most case. if the house don't sell, the file for bankruptcy. they drive the price of the house up high and the value stays the same in the name of a profit.
what role does the CEO's and FED has to play in the current financial situation?? they are the ones who allow it to happen. ether the are blind or they just don't have sense. as a CEO, you responsibility is to keep a company profitable. giving loans to people who cannot afford without COLLATERAL is not an effective way to make profit. the role of the fed is to keep the money flowing in a way so that the economy could flourish. why would you allow banks to take advantage of the people in order to boost up their assets and credential?? in the expense of tax payers!!! that's sad.
now, the FEDs has a bigger problem on their hands, how could they prevent the (inevitable) inflation that will occurs after they loan AIG and all the other banks that the bail out of bankruptcy. in my views, they caused a bigger problem wile trying to solve one. if they had just let capitalism do it work, the economy would bounce back even faster than it went down. capitalism cannot fail!!! when the government intervaing with taxpayers money, they are screwing up, puting in billions of dollars in the economy will do nothing but devalue the US dollar and fail the hard working man an woman of America... why don't the FEDs take some of the assets form these banks and liquidate them to raise money for these banks??? why don't the just let CAPITALISM LEAVE???