The Death of Personal Financial Responsibility in America

It is becoming increasingly difficult to view an entire financial news segment without some mention of the nation's current housing crisis. Foreclosures are at an all-time high, and with interest rates on the rise it seems even more are at risk thanks to the popularity of adjustable rate mortgage products. As with all great national struggles Congress is hard at work looking for someone to blame. While banks and predatory lenders should take their share of the blame, the overwhelming majority of those responsible for the current personal financial crisis are consumers themselves. Sure, those no-money-down interest-only loans looked nice through the banks window, but no one forced you inside to sign up. And those 0% financing offers at the new car lot seemed to justify spending $30,000 plus on a new car, but it didn't change the fact a more reasonably priced used car could have served your driving needs.

The Blame Game
The American consumer has recently had an insatiable appetite for debt, snapping up mortgages and car loans at record rates over the last few years. A combination of low interest rates, increased competition, and the addition of "sophisticated" loan products has spurred the increased borrowing. Now that rates have ticked up, competition is consolidating, and new loan models have received criticism it seems the American consumer has awakened from their slumber and is angrily looking for someone to blame. Fortunately for them, Congress and several of the candidates for president 2008 are eager to take up their cause.