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World Credit Crunch. Whose Is To Blame?

Worldwide loses due to sub-prime loans in US will reach $400bil predicted respectable Investment Bankers.

Who is responsible for this huge losses?

None but the much acclaim 'Alan Greenspan':

This brings me back to Naija. what will happen to naija once Soludo leaves? will the poo start to hit the fan?

Remember things are not always what its painted by these finance guys.

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6 answers

unregulated capitalism. I dont know why financial experts speculators think that they are scientists. Finance is not like chemistry where Hyrogen and Oxygen give out water. they over-trusted their unproven formular. Subprime wahala. They cashed huge money from these trapped low income home owners and went on vacation thinking that every thing will be 'aight" By this time last year major, Wall Street banks were paying their executives billions of dollars in compensation for finding money they had no idea that it existed all in the name of profits.

Wait for another disaster with HEDGE FUNDS. Unregulated, off balance sheet actions, off Federal Reserve's oversight, off security and exchange commission. Believe what we tell you culture in Wall Street.

This should also make us to ponder on our investments in Naija's financial sector. All that glitters is not gold.

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Well, at least we in Naija don't have this problem.

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there you go pretending to know more than the people that started the poo

-->Greenspan is the No1 culprit on the list!

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The Company understood the risk involved before they hired him and agreed to give him such a huge severance package. I do not see how this actually has anything to do with the main problem.

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A CEO came in and did a bad job with the mortgage industry and still got 161 Million severance package.  so go figure

http://money.cnn.com/2007/10/29/news/companies/merrill_oneal/

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Extreme risk taking by Speculators, unregulated debt trading between banks, mortgage institutions and other industry players - those are the major factors responsible.

Alan Greenspan does not force a lender to give money to someone without confirming repayment ability,if you take risks and they backfire, you take the heat. Simple

To make a simplistic tie between low interest rates and risky behaviour by a myriad of individuals/firms is inaccurate.

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