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August 19, 2009
E-mail a friendYOUNG VOICES
Freddie, Fannie and Indy
People need a place to live. It's as simple as that. These days however, it's hard not to think about the mortgage meltdowns and crises affecting some of our nation's largest lenders, Freddie Mac, Fannie Mae, and IndyMac. All three have been the major centerpieces of discussion around the country in our news, in the business sector, and interestingly enough, at our dinner tables.
The crisis continues to make waves and hit homeowners nationwide, as the financial sector also suffers. With family members and individuals investing in these companies that are publicly traded, the companies continue to hurt everyday investor's pocketbooks with damaging effects. If these companies were to become insolvent, we would see a financial crisis manifest so large, that a generation of children years from now might be hearing about what almost became the second Great Depression of the U.S.
Families at this point are doing everything they can to keep their jobs, keep food on the table, pay the mortgage and, above all else, keep their sanity.
Federal Reserve Chairman Ben Bernanke seems to have been working around the clock lately to ease Americans' economic concerns. Another individual in the middle of reconciling consumer confidence in the American economy is U.S. Treasury Secretary Henry Paulson. The two are on a nonstop mission to reassure Americans that the economy may be experiencing some difficulties, but still remains strong.
Looking back on the days of Enron and WorldCom, I hoped that we would have seen a higher level of performance and scrutiny from those in charge of overseeing the business dealings of major American institutions. I think that there needs to be a return to that level of oversight, else we risk the chance of irrevocably damaging our economy yet again.
It seems to me that after a long day, you want to go to a place that gives you a sense of refuge; a place of peace and quiet. People need a place to invite friends and, at the very least, a place to lay their head at night. Homes provide Americans with that opportunity. Now, with economic conditions being what they are, that certain piece of mind is no longer available to most of them.
Are federal regulators to blame for this lack of oversight, or were malicious and shady mortgage lenders to blame? Are we on the tail end of this economic roller coaster, or are we just beginning to see this early tidal wave strike?
What are your thoughts?