JALLEN4,
Yes, you are right about the root cause of the financial crisis of 2008. The foundation of the financial bubble burst was the real estate collapse by not only the allowing of sub-prime mortgages, but very loose commercial credit without verifying ability to repay first and using actual property value, and a real biggie - at or nearly 100% mortgages for anyone without going thru the qualifying process of financial and not requiring at least 5%-10% min down payment, not even having a real job at all, not being a legal citizen in the country, not requiring an adequate detailed credit history info, prove the ability to make the monthly payments including insurance and property taxes let alone the financial ability to even reasonably maintain the property's value, not being required to provide a min of 3 years of federal income and state (where required) income tax filed forms. Other normal requirements were relaxed also.
Foreclosures had escalated beyond any ability to control and the lenders/mortgage holders were also handcuffed in legal restraints etc to sell or auction off the now in usually poor condition properties that were way underwater in accrued debt beyond the original mortgage amount. They then had to find ways to keep themselves afloat and many involved unscrupulous dealing and games for their survival. The insane newly enforced lending laws in-acted in 1993 and further enhanced in the following years had resulted in busting the real estate bubble, the financial, and the credit markets/institutions like a quick bursting balloon which then also caused the financial crisis in the automotive, boat, RV, etc industries. Loans became very hard to get and few buyers had cash! Sales plummeted! The ground work for the bubble burst was laid way back in 1993 and nearly ruined or nation which would have brought on a world recession real quick!
Another form of bringing financial/marketplace fraud is the results of inflating actual sales numbers as it alters the investors/stocks real value and causes bad decisions to be made.
What's really sad is that FCA isn't even an American U.S. owned or run corporation. It's Italian owned and run and is being investigated for reeking fraud on our nation, it's financial entities, the dealerships, and it's people! How sick is that?
