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Originally Posted by Acting Like Godot  But Dan, I don't work (1) in the US, nor (2) in an American bank.
This is one of the things that Americans often don't realise. Your financial system is quite different from most parts of the world. |
I'd have to take your word on that. Usually banks are international, aren't they?
Does your country not use a fractional reserve system?
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Originally Posted by Acting Like Godot This is why elsewhere in the world, people are much more careful about borrowing money to buy a home. A subprime mortgage crisis can really only happen in the US (unfortunately, the implications are worldwide). |
The subprime loans are a red herring for the whole financial collapse though. Easy to blame foreclosures, but they have very little to do with this credit unwind. The banks were very highly leveraged, they lied about their asset valuations. Then they pretended that their balance sheets turned to crap overnight when, in reality, other people's money was being placed into the pockets of a few top people for quite some time.
That's usually how it works with banking. The industry is systematically centered around this.
What service to do you provide to people exactly?