How did we ever get into this subprime mess? Who is responsible for all this ? Who should pay for all this mess that we are in ? How is the economy going to get affected by the current banking crisis ? These are questions that are in the news everyday now. Pundits and economists are all full of complicated solutions and complicated reasons for the sorry state of affairs that we are in now. In my opinion, we do not need to complicate matters more than necessary.
First of all, the bulk of the responsiblity falls on the borrower. If you cannot afford a house mortgage payment based upon your income, then don't buy it ! It is that simple. Now that the borrower is in default of the loan, let the system take care of it in the normal course of events. The US economy has weathered many storms through several decades and this is no different. Dropping the interest rate has been helpful and sooner or later the stock market will come back to its normal healthy levels. So, panicking is not necessary. Let us all take responsibility for our financial actions and not repeat the mistakes we may have made and the system will take care of itself.
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