I dont know Mashaka and also i dont care where he works but he is right .
What you all have to know is that, the global rescission is a vicious Circle which means High Oil prices, High food prices and subprime mortgages are causes.
But you all discussing and jumping on the subprime mortgage which is just one of the components which has caused the recession.
All economist agree that High Oil prices created hyperinflation and decreased the consumer confidence ,which means when people spend less it means the company loses sales and then wanapunguza wafanyakazi , then hao wafanyakazi hawawezi kulipa rent , then inasababisha more morgage default which means home value zinashuka, then banks they have to write loss on their balance sheet which reduce their ability to loan money to business, which means business they cant pay their inventories and their payroll which means they lay more people off goes on and on--------we call this in economics vicious circle.
Without Vicious Circle, the banks could have maintained to hold its old toxic asset without affecting its ability to lend which caused the credit crunch.
That why now the USA Government have different programs in place to break the vicious circle Which includes.
Tax Cut to boost consumer spending
Foreclosure mitigation - Kuzuia house Foreclosure
Bank Bailout to boost Bank Liquidity
Small Business Loan Facilitation
787billion Stimulus Package to increase consumption
Public Private partnership kununua toxic asset so that increase lending
Kama tatizo lingekuwa ni Subprime mortgage peke yake ingekuwa rahisi sana , wangenunua tu hizo toxic asset off the bank balance sheet , But we are in deep rescission which need to restore the consumer confidence , that is the whole point of stimulating the global economy it means to incearease consumption!