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I listen to NPR on a daily basis, read the NYTimes, and generally stay pretty up on what's going on in the world. All Things Considered had a really great piece tonight regarding the collapse of Bear Stearns, and explaining how all of this happened. I'm really glad I caught it.
The problem is that people in the United States of America, in general, have been writing checks they can't cover--in all senses. Business rely on credit and small loans to pay day-to-day expenses, families rack up credit card debt by the thousands and buy homes they can't afford, and big banks invest in potentially risky mortgages without hedging their bets. Add rising oil costs, inflation, and the sinking dollar--and bam.
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If I am not better, at least I am different. --Jean-Jacques Rousseau
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