News and Politics | February 13, 2009 | 1 comment

Roots of the Banking Crisis

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escarondito
Whenever you try to solve a problem you should look at what caused the problem in the first place. In early 2009, the banking system is wrestling with hundreds of billions (if not trillions) of dollars of bad assets, known as subprime loans, marginal loans, or other vague descriptors.

Based on my years of experience as a Chief Financial Officer (CFO) in banking, I can say with confidence, "Bankers are more intelligent and business savvy than government bureaucrats."

That statement is invariably followed by the question: "So, why did intelligent bankers make so many bad loans?" The answer is government intervention and coercion.

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