How we ended up in Crisis Mode

http://finance.yahoo.com/news/Bernanke-urges-Congress-to-apf-3222386032.html?x=0&sec=topStories&pos=2&asset=&ccode=

If you listen to most of the media you're certain it was Wall Street's fault.  Their greedy ways and big paychecks are what caused people to lose their houses right?  It wouldn't have anything to do with buying something outsider your means would it?

Throughout the entire campaign process last year it seemed as if that was the best scapegoat.  Wall Street did it!  It makes plenty of sense, they are only a small voting demographic.  Oh but they contributed big money to your campaign, Obama, Obama- what were you thinking?

Obama may have changed some of his opinions though.  In a talk with Bernanke this week, he mentioned creating videos to make families more financially literate.  But it gets better, he even went on to mention that some people bought houses outside their means.  Thank you Obama for finally pointing your finger in more than one direction.

The crisis is now national, but still not the same throughout.  Where did it start?  We have California, Florida, New York, and lastly Michigan to blame.  Too many houses, not enough buyers, and too many people thinking they needed a bigger house.

The real culprit for the housing boom and fall is actually Congress and one of their societal pushes known as the Community Reinvestment Act.  Clinton furthered the Act in 1997 and basically pushed banks to make sub-prime loans to minorities and low-income individuals that might not normally get them.  That's all I'm going to delve into that for now, but it was and is a big problem.  Basically "Reverse-Discrimination" if there is such a thing, sort of an oxymoron in my book.

Hope you all did well on that accounting test.  Have a good weekend and see you at the picnic.