Did Foreigners Cause America's Financial Crisis?

Question

Interesting TIME article about root cause of the US financial crisis .... not sure I agree but put a different spin on what I've read and believed before:

"There is no doubt that the pressure on the U.S. financial system [that led to the financial crisis] came from abroad," says Caballero, who is the head of MIT's economics department. "Foreign investors created a demand for assets that was difficult for the U.S. financial sector to produce. All they wanted were safe assets, and [their ensuing purchases] made the U.S. unsafe."

here's the complete article link:

http://www.time.com/time/business/article/0,8599,1954240,00.html?xid=rss-biztech-yahoo

Timothy W. · Answer

Who's more at fault? The foreigners who took those loans (or "seemed" foreign to you) or you for selling those loans? Who was the licensed professional here? People, the age of blame is over. I went into foreclosure on the first property I bought because I made decisions that put me in a bad financial position and I am responsible for the end result. I took responsibility for my actions and changed my ways. I am positioned just fine for this "crisis" because I know who is responsible my financial situation - me. The buck needs to stop or we'll never turn this crisis around.

Account Closed · Answer

Total nonsense! Here is a rebuttal article from zero hedge: Foreigners Caused Americaâ€™s Financial Crisis? A Closer Look http://www.zerohedge.com/article/foreigners-caused-america%E2%80%99s-financial-crisis-closer-look

Jim Wineinger · Answer

Static it is total chaos to think that any foreigner can purchase anything without the approval of laws and or seller. Therefore the foreigners can not do anything without our approval by allowing laws passed or underhandly allowing them to purchase what they should not. This is not the foreingers fault it is ours!!!!!!!!!!!!!!!!! If we vote people into office that ok laws for this possibility because we do not want to dial back our lifestyle this is not the foreigners fault it is ours. Any such article that blames the foreigners is the real nonsense and only serves to allow us to continue in our own ill-fated patern. IT IS TIME TO BREAK THE BLAME MOLD.

Timothy W. · Answer

Wait a minute. Maybe a foreigner is to blame. Where was Obama born? :wink: :lol: :lol: (Anyone who takes this too serious shall be beat severely.)

James Harkness · Answer

Ultimately, it is the all-mighty dollar that causes the problems and corruption in politics. It has been the same throughout all of history. It is really no surprise that policy makers ignored the signs that the economy was heading towards a crash. As long as there is still money to be made, there will be people trying to milk the system for all it is worth.

Jim Wineinger · Answer

It is one thing to use the system to your advantage, but to change the system so that basically only you or your group can have all the power (or money) is what is wrong. "My group gets special consideration, before any other group and I was the person that helped provide that to them so I can control how they think and what they do." No it is not about the money in and of itself, but the desire to control whole group(s) of people. Money does help in this regard, but is a tool to the end results of power and control.

Jim Wineinger · Answer

In all reality, I did a blog post about this. It seems to me that those that are being blamed for the crisis were actually led down the road (where they could be blamed) by those who would desire power and control over our actions. Supply and Demand will always determine price, but there are things that affect supply and demand. Such as the easing of credit policies produced more demand for the supply of available homes, thus the prices began to rise quickly creating the bubble. These policies were passed through the government by the special interest groups with their power and control over our governmental officials. The "fundamental change" that needs to occur is to put an end to all special interest groups. Everyone should be represented equally in government, not just this or that group that screams the loudest at this or that time.

Jim Wineinger · Answer

And that is the reason that government throws around so much money to so many special projects. They gain power and control over those people by the money they throw around. They are not interested in the money itself but the power and control that it provides.

Richard J. · Answer

I believe we as a nation are bankrupt when it comes to our housing crisis; according to Webster's New World dictionary, bankruptcy is (2.) complete failure, ruin. I do not know how you could or would be able to define what the American housing industry is going through right now as anything other than a complete failure and soon enough it will engulf our commercial real estate. There is plenty of money to be made by investors, but the great divide will widen and it is those at the top of the pyramid who will be taxed handsomely to pay for the bankrupt actions of the self-appointed "gods" of distribution. The vote dollars wil be hand delivered to the masses at the bottom... or will they? It will be interesting to see how Brown fares in Massachusettes. Only registered foreigners can vote, unless of course there is corruption? -- Dawn

James Harkness · Answer

I was a loan officer for two years for the leader in the industry originating stated income, stated asset, small commercial mortgages. As I say this, I cringe and prepare for the responses. However, I can tell you one thing. About 75 percent of the loans went to foreigners (or so it seemed) and it was prolly an even larger percentage that applied for the loans. Not sure what that means, but I found it alarming at the time.