Although much of the news has been devoted to the fallout of the poor credit mortgage market, some experts are wondering just how bad things really are and who is really to blame. While some of the blame can certainly be cast on the banks that offered poor credit mortgages to those who had no hope of paying them back, some wonder where else we should be looking and wondering if the whole system may be flawed.Robert H. Hemphill, a one-time credit manager at the Federal Reserve Bank in Atlanta stated, “This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous, if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilisation may collapse, unless it becomes widely understood and the defects remedied very soon.”
Related reading: Poor Credit Mortgage
Comment on this article