金融危机的原因 英文_金融危机英文
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美国金融危机原因（B）
The recent upheaval in the financial sector has some people in a panic, most people bewildered, and others busy aiming their pointer fingers at whomever they think is guilty of doing something that contributed to this problem.The presidential candidates are in the latter category.They aren’t quite sure what to do or what to say, but that doesn’t stop them from saying something, anyway.John McCain made a decisive statement, attempting to show leadership, but his statement was not a very
smart one.Barack Obama, by contrast, simply blamed Republicans.Few things are as simple as politicians make them seem in an election year.Political candidates succeed by iuing pointed statements that are easy to understand and that connect with voters;truth and accuracy are not the primary concerns.The important thing right now is to figure out what
actually happened in the financial sector, and fix things so it can’t happen again.We must ignore the
tremendous amount of speculation about what “might” happen, and the doom andgloomsoothsayerswho tell us that the sky is falling or that the end of the world drawethnye.Because of its complexity the current financial situation invites simple political meages that connect with voters;it does notlenditself to full explanations that illuminate.So, when Sen.Obama says that “it’s the
Republicans’ fault,” he is expreing a simple idea that a lot of people buy into, but doesn’t explain anything.It is a sillyoversimplificationunworthy of a man who would be President.It appeals to emotional prejudices and ignores inconvenient realities, and most important of all, it is just plain wrong.When Sen.McCain suggested that Securities and
Exchange Commiion head Christopher Cox didn’t do his job, and if he were president he would fire Mr.Cox, the Senator didn’t offer specifics.We’ll know more
about Mr.Cox’s role as time paes and we learn more
of the details, and can then judge if Mr.McCain’s simple meage to voters about firing Chris Cox was a proper evaluation of the situation.Sen.Obama described the currentagonyas “the most serious financial crisis since the Great
Depreion,” ignoring all the receions since then, even the ones in the 80s and the one following the 9-11 attacks, botharguablymore serious crises.Of course, it remains to be seen just how serious this problem will ultimately be, but given Mr.Obama’s
abysmalunderstanding of things economic, we would do well to take hisprognosticationswith agrainof salt.The root of this problem is the housing market’s
subprime loan crisis.A subprime loan is a loan made to someone who under normal circumstances would not qualify for a loan, based upon their income and their ability to make payments.Thatbegthe question: Why would a bank make a loan to someone it believes is unable to make the payments?
The Community Reinvestment Act(CRA)was given life during the Carter administration, andempowersfour federal financial supervisory agencies to oversee the performance of financial institutions in meeting the credit needs of their entire community, including low-and moderate-income neighborhoods.Whenever an institution wants to make virtually any change in its busine operation, such asmergingor opening up a new branch, or getting into a new line of busine, it must first prove toregulatorsat it has made ample loans to the government's preferred borrowers, those in low-and middle-income neighborhoods who normally would not qualify for a loan.Lenders with low ratings can befined by the government.The Carter administration used tax dollars to fund numerous ”community groups" that helped the governmentenforcethe CRA by filing petitions
against banks whose “cooperativene” didn’t measure up, and sometimes stopping their efforts to expand their operations.Banks responded by giving money to
the community groups and by making more loans.One of those organizations was the Aociation of
Community Organizations for Reform Now(ACORN).An active aociate of ACORN in the 90s was a young public-interestattorneynamed Barack Obama.So, starting in 1977 the federal government began “encouraging”—perhaps “strong-arming” is a more accurateterm—banks to make loans to people to whom they normally would not make a loan, and in 1995 the Clinton administration pushed through
revisions to the CRA that substantially increased the number and amount of these loans.All of the bad loans weren’t caused by the CRA, of
course, but billions of dollars in CRA loans did go bad, as should have been expected.When Fannie Mae and
Freddie Mac came along and made it poible for banks to escape the risk aociated with theseill-advised loans, conditions were just right for a large portion of the banking industry, even institutions that did not fall under the CRA, to become involved in making loans to
unqualified borrowers, and banks participated in big numbers.The federal government’s fingerprints are all over this crisis, and the Democrats who are today so righteously indignantand blaming the administration are at least as guilty as the Republicans.
