"The Credit Crunch is America's Fault....." Really????

[jesusbuiltmycar]

http://www.iht.com/articles/2008/11/27/business/co...

IHT said:

Bank liabilities in the United States are about 20 percent of the size of the economy. In Britain, the figure is 285 percent.

Ask yourself then what might happen to Britain

So....

Did the Americans really force our banks to lend so much?

[Dakkon]

They did sell the sub prime debt to the rest of the world, but our own banks greed bought it.

[s3fella]

But 90% of our economy IS banking..!?!?

[Mr POD]

Dakkon said:

They did sell the sub prime debt to the rest of the world, but our own banks greed bought it.

They scammed our banks, who were too greedy to check out the small print.

[Blib]

IHT said:

Bank liabilities in the United States are about 20 percent of the size of the economy. In Britain, the figure is 285 percent.

We're fked.

[Maxf]

Pretty much. They sold their st to anyone who'd buy it. The problem is it wasn't always easy to tell what was st and what was ok because the debt was sold in lots - good and crap all mixed up with an overall rating.

IMO it was Americas fault for selling it, knowing it was crap. The rating agencies fault for not picking it up/not wanting to, then our banks fault for buying it.

[im]

Maxf said:

IMO it was Americas fault for selling it, knowing it was crap. The rating agencies fault for not picking it up/not wanting to, then our banks fault for buying it.

Haven't you missed somebody off that blame list?

[Mr POD]

Maxf said:

Pretty much. They sold their st to anyone who'd buy it. The problem is it wasn't always easy to tell what was st and what was ok because the debt was sold in lots - good and crap all mixed up with an overall rating.

IMO it was Americas fault for selling it, knowing it was crap. The rating agencies fault for not picking it up/not wanting to, then our banks fault for buying it.

Buyer beware. As my gran once said "Nobody sells a car because it's good. They sell it because there's something wrong with it"

Why would a bank sell a good debt, which they could make money on. They'd keep it, and make money.