What other money can you have? Booze, drugs, porn as means of exchange? Certainly not gold, it's not as practical as the three things I just mentioned. I propose we go back the booze standard.
It's not the subprime mortgages that are the problems, it's the worthless paper written on them. The banks gave out mortgages so that they could write out derivatives on them and then sell those. If you honestly think that lowering rates to 1% is meant to help you, you deserve to get screwed. The writing is on the wall, the question is whether you choose to read it.
But fiat paper printed at will by a private central bank is? I never cease to be amazed how some people just beg to be hoodwinked.
That goes without saying. You didn't think a post about booze and porn as a means of exchange contains a little sarcasm? Oh ya, I'm from Canada. We have mortgage securitizers here, as well as a little sub prime. But don't come to Canada looking for a credit crunch that we brought upon ourselves. We have a well regulated banking system that lends responsibly. You'd think the value of the derivative would be reflecting of the value of the mortgage it derives from, by definition. If a bank gives out mortgages doomed to default, it doesn't matter if they're securitized or not, it will become a worthless burden, someone (tax payers in this case) have to pick up the bill. But at least the world can now see the wrong way to handle mortgages and hopefully it won't happen again.