The economic crisis that has befallen much of the world was born from a credit crisis with roots in the U.S. housing market. It was there that homeowners, mortgage brokers, investment bankers and regulators built a house of cards. Its collapse has rippled throughout the world. Resolving the complex crisis is difficult.
TAKE OUR POLL!
TELL US WHAT YOU THINK Selected comments will be posted here on CNBC.com.
VIEWER COMMENTS
Brian from Connecticut The only solution to this problem is to let market forces revalue assets. By propping up artificially high prices and failing institutions the Obama administration is showing it is more interested in re-election than long term economic viability. The same greed and self interest which led to this mess is now serving to prolong it.
Kathy from South Carolina Everyone deserves an opportunity to own a home, whether they are super wealthy or not. But affordable, decent, safe neighborhoods have to be designed and built for them. And until we make those responsible on Wall Street, Fanny Mae, Freddie Mac and the fly by night mortgage companies pay the consequences for this mess they have created, nothing is going to change and nothing is going to be done to help the average American.
Mary from California The prime culprits in this affair were the ratings companies who did not do the job they were paid to do. Had they deduced that the housing price bubble could not be sustained, they would not have rated the securitized mortgages AAA. Proper ratings would have put a lid on the machine that funneled so much money to mortgage lenders for more and more bad mortgages. Why are they not being held accountable for clearly not doing their job?
Mark from Michigan My opinion is we should not do anything except let people, businesses and banks who are over leveraged and out of control fail. The sooner we get to the bottom the faster we can move up again.
Rich from Maryland There will always be a need for sub-prime lending in this country. Right now there are hundreds of thousands of sub-prime borrowers that cannot get financing. There is too broad a brush being painted with the words "sub-prime." My fear is we will shut off access to this population of borrowers for a long time to come.
R. Stanley from Indiana Before any more money is given to the banks and Wall Street firms, ALL money handed to them in the first bail-out package should be accounted for. If any of the money is traced back to bonuses for CEOs, that money has to be given back to the tax payers prior to any more money being distributed to these banks and companies. No one should receive a salary greater than the President of the United States. PERIOD!
Karen from North Carolina "House of Cards" was mindboggling and jaw-dropping. I had not comprehended the greed of all parties in the chain until it was illuminated on the program. Not only have we screwed ourselves, we have also screwed the world by selling those securities that should never had been rated "AAA". I am really disappointed in what the ratings agencies did in making this mess. I had not realized their complicity until I watched the show.
Chuck from Florida This presentation shows how we Americans have not only lost "value" but how we have lost "our values." Everyone needs to look into the mirror and make themselves accountable for their actions and not blame the next person.
Kathy from Kentucky As I watched I was both angered by the overall lack of ethics and integrity in the business world and concerned that this economic crisis is long from over.
Joy from Florida The housing bubble was artificially pumped up by homeowners using their homes as a piggy-bank by refinancing every year to "pay off their credit cards", by the mortgage lenders all too eager to lend the money and make the commission, and those packaging these worthless mortgages to sell to unsuspecting buyers. The credit agencies have made themselves irrelevant and unbelievable by their actions as well. Greenspan should have increased the interest rates to cool down the lending but he did not want to end the party.
David from Georgia This program needs to be seen by a wide audience, but especially by all elected officials in Washington -- and then I'd like to know who agrees with Alan Greenspan's fatalism: That there's nothing you can do to prevent or stop excesses like those created by mortgage excesses and the obfuscated securities that enabled it. If Greenspan's pessimistic views like these were more widely known, I doubt whether he'd had been Fed Chairman as long as he was.
Dorene from Nebraska We should let the culprit banks fail. There are plenty of good banks left. Help the victims refinance mortgage loans with reliable banks. Bring back the old regulations to prevent something like this happening again.
Linda from Ohio While I do consider greed as a major factor, I also think that the homebuyers share a great deal of responsibility in their thoughtless purchase. When will being responsible be rewarded? Rewarding bad decisions and actions only breed more of the same.
See how the American dream became a nightmare. Award-winning reporter David Faber investigates the most crushing economic crisis since the Great Depression. DVD includes more than 30 minutes of bonus material.
Current DateTime: 07:12:37 28 Nov 2009 LinksList Documentid: 29183928