Sometimes, people ask me things. This is because I know things. I have a lot of time to sit here and ponder life. Right now, we are in the midst of an economic downturn. Children, I will tell you why that is:
Things were good. People were making money. But some wanted more. So, they decided to take risks. They began to offer loans to people who were not ready for them. The lenders knew that the folks who wanted to borrow would agree to terms that were not reasonable, because they were desperate. The borrowers were as greedy as the lenders and both let reason fly away in the wind.
Then it happened. The bill came due. At first it did not worry the lenders when some of the holders of the risky loans started not to pay. "We have enough good loans to cover these bad ones!" they thought.
But then it became epidemic. Why? A risk is a risk. Everyone took too many risks. Lending and borrowing. Both motivated by greed. It turns out that this whole industry housed in shiny tall buildings were really houses of cards. They fell over. Risk is no longer in fashion.
Children, listen to the Bear. Do not take candy from the someone who makes you crazy promises.
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