The "Subprime Crisis" was like a large dirty nuclear bomb going off with fallout all over the world. Below is an excellent overview of where this is coming from:
- There's no reason why subprime mortgage financing should exist at all. Canada has done well without it.
- High risk securities should be properly rated and regulated so that buyers know what they're getting into.
- Mortgages sellers should inform their customers of all costs relating to their mortgages.
- Citizens of the U.S. should be encouraged to save money in high interest bank accounts which are not taxed. This is now done in Canada.
- The U.S. Government should promote a house as a long term investment rather than as a line of credit or a way to make a quick buck in "a house flip". Pride of ownership would be the theme.
- Children at school should learn as early as possible the ABCs of investing, saving and credit before they make use of them.
- The candidates in the U.S. election should be challenged to come up with a better plan for a U.S. economic recovery.