Common Reasons
A variety of causes have been thrown out as the cause of our current economic mess. These include the following:
1) Governmental policy encouraging home ownership for everybody, no matter their economic circumstances
2) Lack of government regulation over the mortgage and banking industry
3) Insurance on mortgages creating an incentive for bankers to give out bad loans
4) Too much money being created which helps caused a housing bubble
All these reasons have facts to support them, but in my opinion, the fundamental cause was DISHONESTY.
The buyers of houses who stated income they didn't earn to buy houses they couldn't afford were DISHONEST.
The real estate brokers and appraisers and other middle men who knew the people they were selling houses to couldn't afford the houses they were buying were DISHONEST.
The bankers who knew they were giving out bad loans but thought that the insurance would cover them were DISHONEST.
Predictably, the insurance company went broke.
If any one of these groups had been 100% honest, the current economic recession would not have been so great. More unqualified people would have not gotten into houses and the surplus of vacant homes would not have been so big.
A leader in the Church of Jesus Christ of Latter-Day-Saints summed it nicely when he said -
A variety of causes have been thrown out as the cause of our current economic mess. These include the following:
1) Governmental policy encouraging home ownership for everybody, no matter their economic circumstances
2) Lack of government regulation over the mortgage and banking industry
3) Insurance on mortgages creating an incentive for bankers to give out bad loans
4) Too much money being created which helps caused a housing bubble
All these reasons have facts to support them, but in my opinion, the fundamental cause was DISHONESTY.
The buyers of houses who stated income they didn't earn to buy houses they couldn't afford were DISHONEST.
The real estate brokers and appraisers and other middle men who knew the people they were selling houses to couldn't afford the houses they were buying were DISHONEST.
The bankers who knew they were giving out bad loans but thought that the insurance would cover them were DISHONEST.
Predictably, the insurance company went broke.
If any one of these groups had been 100% honest, the current economic recession would not have been so great. More unqualified people would have not gotten into houses and the surplus of vacant homes would not have been so big.
A leader in the Church of Jesus Christ of Latter-Day-Saints summed it nicely when he said -
In most of the world, we have been experiencing an extended and devastating economic recession. It was brought on by multiple causes, but one of the major causes was widespread dishonest and unethical conduct, particularly in the U.S. housing and financial markets. Reactions have focused on enacting more and stronger regulation. Perhaps that may dissuade some from unprincipled conduct, but others will simply get more creative in their circumvention. There could never be enough rules so finely crafted as to anticipate and cover every situation, and even if there were, enforcement would be impossibly expensive and burdensome. This approach leads to diminished freedom for everyone. In the memorable phrase of Bishop Fulton J. Sheen, “We would not accept the yoke of Christ; so now we must tremble at the yoke of Caesar.”
No amount of regulation, no amount of change in policy, no change in insurance, no limitation on the money supply can keep people from being dishonest and from financially hurting the society at large.
Currently there are some protestors who are against corporate greed. I would suggest that instead of complaining against corporate greed, they instead focus on the root cause of our economic troubles, DISHONESTY. They could set an example of being 100% honesty in all their dealings and call on the bankers do the same. That would be a good start toward economic recovery. And I'll start it off by hereby promising to be 100% in my all my dealings, especially business dealings.
No amount of regulation, no amount of change in policy, no change in insurance, no limitation on the money supply can keep people from being dishonest and from financially hurting the society at large.
Currently there are some protestors who are against corporate greed. I would suggest that instead of complaining against corporate greed, they instead focus on the root cause of our economic troubles, DISHONESTY. They could set an example of being 100% honesty in all their dealings and call on the bankers do the same. That would be a good start toward economic recovery. And I'll start it off by hereby promising to be 100% in my all my dealings, especially business dealings.
