The whole world is reeling as a result of consumer and corporate greed.

Subprime mortgages allowed people to purchase the dream homes they really couldn’t afford. Banks wanted to make more money off of the consumer. Things got bad for buyers. The house of cards got wobbly and started to collapse.

We can look at the history books at what happened in the Great Depression and see the simple mistakes in fiscal policies that led to that financial collapse. I don’t think we learned much since then..

Sitting here in Canada I wondered how such an obviously dumb thing could happen again, not realizing the impact it would have around the world. In my ignorance, I thought it would have some big problems for our southern neighbors that would spill over some into other nations’ economies, but nothing like what is happening. Our global economy is incredibly inter-linked.

Banks in London and other European nations in trouble because of the US housing market?
Canadian banks writing off billions?
Talk of the US dollar being abandoned as a currency backing in foreign nations?
One in forty-five US homes possibly facing foreclosure?
Worldwide recession?

Turns out that mortgage debt was being traded all over the world, so the impact may be global. Because of house buyers and corporations wanting more.

Greed has a price, and the whole world may have to foot the bill.