Why can't americans admit they messed up the economy?

Discussion in 'Economics' started by mahram, Apr 3, 2009.

  1. I dont understand why americans can't admit that they messed up the whole world economy? You have people on air going, we didnt do this. Then when you talk to them on what caused it, they go subprime, derivitives by american banks and consumers. Is it just plain denial. I dont know why people cant just fess up to thier mistakes. It kind of reminds me of how cnn got the senator on his lie, but even those he was caught, he couldnt fess it.
  2. gnome


    The populace of we Americans are far down the list of "reasons" for this mess.

    Sure, a percentage of Americans who could not get a loan for a home before were [falsely] given eligibility when they shouldn't have been... but those people always WANTED a home.. "the American dream" sort of thing.

    Then there were those who understood finances and bought multiple houses for investments and flipping... but they never should have been allowed to do so with little or no money down.

    Those really responsible were (1) GREEDY American politicians for making such loans not only possible, but MANDATORY in many cases, (2) GREEDY banks for irresponsible underwriting of mortgage banks (because they knew they could offload the mortgage to Freddie and Fannie... and they knew THAT because GREEDY politicians arranged for Freddie and Fannie to by EVERYTHING in the way of home mortgages, quality or not), (3) GREEDY Investment Banks for devising the Credit Default Swaps where no one was required to reserve to honor obligations if called upon... BUT they never would have been able to develop CDSs without #1 and #2 above, and (4) Alan GreenScam and the Fed for facilitating much of it with irresponsible money-pump and irresponsibly holding rates very low for way too long... thus creating a "carry trade" where there was even no currency risk. (This facilitated the perception of "the perfect investment"... higher than other current yields and INSURED against default... or so they thought... and so the GREEDY financial world LEVERED THE BEJESUS out of the situation.)

    Without all of the above, the "average American" wouldn't have messed up anything and we'd have none of these problems facing the financial world today.

    The amount of damage caused by unsophisticated Americans who were falsely given sub-prime mortgages and then defaulted on them is perhaps only 1/100th of the total damage.

    So.... those responsible are Americans... a relative handful of us... and they are slimy enough to not only NEVER admit it and claim responsibility, but who also LIE AND DECEIVE ROUTINELY in their normal course of doing business.
  3. Your right. America should never do business with other countries. You guys would be much better off in the stone age without us.

    You're also right about our banks being the only banks responsible. After all we did hold guns to the heads of major bankers in other countries forcing them to do business.

    But hey I understand because if I was a plant and my owner didn't water me I would be pretty pissed too.
  4. and we forced all the european banks to lend all of their money to eastern europe. we decided it was too safe for us we wanted you to have all the good fortune of lending to those trustworthy former ruskies
  5. Tresor


    Eastern Europe (except for Ukraine and maybe Latvia) is doing better than USA.

    Debts are kept tight, deficits are low, compared to even West European countries. Some countries like Poland will have a growth in GDP this year - even rating agencies predict so.

    Make your own research and compare macro indices. Do not make your judgments based on what American media say.

  6. Nice, very nice……even though it could be interpreted in other ways as well. :D :D :D
  7. The difference between Poland and USA is that Poland -- along with the rest of Eastern Europe -- still looks like 1945: broken roads, bombed out downtown areas and people earning 450 EUR a month. Large parts of the economy are a shadow and underground economy: most of it is still cash based; salaries (or large parts) are paid out in cash, dodging taxes and social/health care costs.

    Just another fantasy economy that went on a debt financed buying &building spree in 1990 after the collapse of socialism with wild optimism of achieving a Western standard of living within 10 years that took the Western world 50 years to build.
  8. Tresor


    You are right on the average salary of EUR 450. You are wrong on the other issues. The difference between Poland and USA is:

    1. Poland (just as any other country in Eastern Europe) has a state owned central bank. USA is a victim of its privtely owned central bank.

    2. Eastern Europe has much lower criminal rates than USA.

    3. There are a handfull of homeless people in Eastern Europe. There are plenty in USA.

    4. The standard of living in Eastern Europe is of course lower than in USA

    Ha ha ha, you must be either blind or misinformed. USA is a fantasy economy with all their credits. USA created a falacy that everyone can afford to have their own home with no or little equity.

    You are also wrong on ''wild optimism''. There wasn't such thing.

    Do yourself a favour and make your own reasearch on debts. What you will soon realise is that USA debts compared to USA's GDP is tens time higher than the same ratio for Eastern Europe.

  9. Tresor


    Okay, you edited your post by adding this sentence:

    You are an ignorant. All payments made between companies that exceed EUR 10,000 must be paid electronically with the use of banks.

    Based on the act of parliament from year probably 1995 all salaries in Poland must be paid either to one's account or must be paid by check and that's how 99% of all salaries are paid.

    The remaining 1% is indeed a shadow economy. I wouldn't call it a large part. But since you are an expert, you are allowed to do so.

    Indeed you are right when you say Poland has dodging taxes. Polish company income tax (CIT) of 19% is one of the highest in the region.

    Once again, run a comparative study on your own.

  10. xburbx


    I'm an American, and I admit it. I feel bad for all responsible Americans and any person around the world that has suffered because of it. If everyone took responsibility for their own actions American or not, this would be a different story. The blame game doesnt matter at this point. Suck it up and figure out how to survive. Producers in society will always find a way, American or not.
    #10     Apr 3, 2009