Fixing Wall Street Won't Fix Our Economy
We could have averted the current financial crisis by creating affordable housing and good jobs, strengthening public education and providing health care and child care for all families, to help hardworking Americans thrive in the middle class instead of being pushed into poverty.
Sally Kohn, Movement Vision Lab, in AlterNet
Sure, the CEOs and hedge fund managers were greedy. There's no question that wealth and the pursuit thereof led to the sub-prime fiasco and the decline of Lehman Brothers, AIG, Merrill Lynch and more. But what's really at play here is persistent poverty and Wall Street seeking to make a dime off the poor, consequences be damned, while Washington looks the other way.
The sub-prime crisis is the result of good people getting bad loans. Loans that triple or quadruple in interest rates, riddled with small print, are unbearable by most homeowners. But they are particularly unsustainable for low-income families working two or three jobs to make ends meet. Still, lenders scammed hardworking families with the promise of owning homes they really couldn't afford. And then greedy Wall Street managers, looking for a new way to squeeze a buck from an already bursting-at-the-seams economy, bundled up these bad loans into worse securities, sold them off, and tried to gain a profit as our national economy lost its shirt.
Related:
Obama's Economic Reforms Should Re-structure the System -- Not Just Reform It, Danny Schechter, AlterNet
We're dealing with a political elite that is more Clintonesque than Rooseveltesque. Will meaningful change be possible?
