What's the real cause of this crisis that is financial?

What's the real cause of this crisis that is financial?

And just just what it claims about language, the company press, and just how we consider the crisis that is economic

By Elinore Longobardi

“Lousy loans, ” claims Elizabeth Warren, the chairwoman for the Congressional Oversight Panel. We agree. And then we such as the expression, specially since it provides a good counterweight to that other double-L phrase, “liar loans, ” which tends at fault the borrower. Warren’s expression is an informal one, needless to say, however in some real methods it is best compared to the language the press has had a tendency to used to characterize the origins for the crisis. Truth be told, of the many terms that are possible explain these lousy loans, the press never ever discovered the correct one. And as we’ll see, the possible lack of a single word—one easy-to-understand adjective to include front side associated with the word “loans” or “lending, ” a term that could encapsulate the boiler-room culture that annexed the mortgage industry—cost most of us plenty.

Rather than the word that is right the press deployed another word—“subprime”—for reasons which are to some degree understandable, but regrettable however. Unfortunate because “subprime” describes only the debtor, in unflattering terms, and it has nothing to even say in regards to the loan provider.Read more