Just Plain Greedy

Who is really responsible for the greed that caused the economy to turn down?

QUESTION: Holly wonders if the greedy consumer is responsible for the mess the economy is in today, in this clip from September 30, 2008. They are, according to Dave; but they are not alone.

ANSWER: That is certainly a large amount of it. The inability to say no to ourselves and run up debt like a spoiled child, that immaturity has caused the consumer to do stupid things in the debt realm, which is how I’ve made a living for the last 20 years. You ask youself, who is at fault; the payday loan lender or the idiot who goes over there? The answer is both, because there is no moral restraint. In terms of the subprime mess, the fault lies with the consumers and the banks.

If we’re going to point fingers even more, it’s the fault of Democrats and Republicans, because they put housing initiatives in place that said it would be nice if everyone had a home. It was people trying to help poor people by giving them a home they couldn’t afford. If anyone dared to not loan money because of the area of town that they lived in, then the potential lender was labeled as a racist. It has nothing to do with black or white; it’s about green.

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Reach Your Money Goals

Reach Your Money Goals

Start with a budget. Join the millions already budgeting with EveryDollar!

Create My (FREE) Budget

Thank You!

Your 8-Day Jump Start is on its way to !