The US economy is in a bit of a problem. The subprime mortgages issue is now at its peak. I was just reading an article on the internet, which was detailing the efforts of the US State Treasury Department in mitigating the crisis.
We all have a lesson or two to learn from the situation. Do not borrow more than you can repay. And nothing in this world always surges northwards. Yes, not even property prices. Nature and time are powerful factors that can make any speculation or rule go wrong.
The US State Treasury also deserves some praise. It has stepped in and mediated at the right time. The lending firms too realize that it is fruitless to stress on contractual agreements, when their borrowers are in no position to pay the higher interest rates. The significant comment that came from the Senior VP of Mortgage Bankers Association that, "All these people are contractually obligated to pay these loans on the terms they agreed to pay on. We need to focus on people who, without this help, wouldn't be able to stay in their homes".
The last line in the above statement is a perfect balance of business continuity and the human factor of doing business. Can such a thought even occur to entrepreneurs, politicians, trade union leaders and business houses of our country?
See I told you! I made this post when the crisis was yet to blow-up to full scale.
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