As we sink into the muck of what looks like a bad recession, thefinancial structuring geniuses and government leaders who enabledthem keep doing a neat tap dance. They conveniently continue toblame a subprime-induced credit crunch for all this impendingtravail. Yes, financial gridlock has been caused by all thosepoor people who really couldn't afford homes in the first place andwho shouldn't have taken out those subprime mortgages. Yes, it waspoor people, striving for something beyond their limited means, whoprecipitated all those problems with highly leveraged bonds, backedby those bad subprime loans. And now, everyone is scared to investin anything.
And then there is the solution, if we only can get liquidity back and get investors to start buying stocks again, andthe bull market resumes, and we can start doing lots of deals withmore cheap debt (thank you Fed for low interest rates), and makelots of fees from doing all those transactions, everything will begreat again. It's the credit crunch, darn it the creditcrunch.
It should only be so.
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