The sub prime mortgage crisis was caused by government intervention. Now you may watch your little left wing media and not or your just ignorant. Let me explain to you what caused the real estate debacle. One the federal reserve lowered interests rates artificially to an extremely low level. They did not let the market dictate the interest rates. This encouraged investing and spending and discouraged saving. However the biggest problem was the government run mortgage companies Fannie Mae and Freddie Mac. These were social justice mortgage companies who would back loans to people that normally would not be able to get loans. So the government backed loans to some people that didn't even have a job.  Now the government run industry like all government run entities had bad books, it didn't have the accountability and efficiency it should have. Then to make matters worse the government then bullied banks to make loans to minorities even if  the banks thought it was a bad idea. They threatened lawsuits and regulations and mandates. Now let me enlighten you to what happened, the people that the banks were forced to loan to and the people that took out govt mortgages didn't pay them back. Well seems like their was a reason that they couldn't qualify for the banks lending standards prior to the govt getting involved. This of course eventually made fannie mae and freddie mac go bankrupt as well as the banks that had to give loans to people that couldn't afford it. Also the low interest that the federal reserve artificially lowered to try to stimulate the economy encouraged the kind of buying and building of houses by people at a distorted rate because they weren't going by market standards they were going by artificially lowered interest rates set by the fed reserve. Now when the borrowers couldn't pay the house note this led to the bankruptcy of fannie mae and freddie mac and to the banks that made the loans to people that should of never got houses. Now these lowered interest rates led to people spending more than they should and built an economy centered around real estate artificially. So when the real estate industry fell our whole economy fell. But it wasn't the market that did this it was the exact opposite, it was govt. intervention.   
                    Hope you see the light now

How funny was it that Obama was involved with suing the CitiGroup in the early 90s because of their reluctance to loan to moronic black people with terrible credit ratings?

Now everybody is babbling about how the banks behaved in a predatory fashion when they loaned to African Americans who had no ability to pay back the loans. Yet at the time, refusing a loan application (for the perfectly valid reason of having a poo credit rating) would have landed one in a lot of trouble for "racism".

Life is funny sometimes.

Americancitizen87 wrote on Aug 6^th, 2009 at 10:36pm:


You seem confused Americancitizen87, why blame "left wing people" when the sub prime crisis was under the watch of George dubya.
Thanks for the history lesson but we have media in Australia we even have TVs so we can watch things like George dubya stuff the USA economy whilst he invaded other countries for oil.

freediver wrote on Aug 15^th, 2009 at 4:13pm:

There are 30 million people on food stamps in the US right now. Your missing the point the fed shouldn't have to raise interest rates to avoid disasters that they cause the markets should dictate interest rates

Man I am sorry you are misinformed brother. The fed's low interest rates led to an artificial lending standard as well as a government run mortgage called fannie mae and freddie mac that guaranteed loans to people who couldn't normally qualify and this not only drove up housing prices but it led to reckless lending and spending.

freediver wrote on Aug 15^th, 2009 at 5:23pm:



The market IS the people - as distinct from the government, which is another manifestation of the people.
And so there has never, ever, been a talk or practice of totally free markets - or an absolute government control of every aspect of life, on the other hand.

The markets are answers to question that are framed in terms of economics. Government is an answer to questions framed in terms of control.  It is always a matter of letting each do what it is supposed to.
Political disputes and discussions are about that - what is each supposed to do.

Quote:


The bubble was natural, not artificial. The federal reserve saw it coming from a mile off and prevented it getting out of control. It's like you are blaming a driver for the steering wheel going back and forth slightly because you believe the car would run dead straight with no hands on the wheel. The cause comes before the effect, not after. Picking two historical events and linking them together for convenience, regardless off the timing, flies in the face of reason. Interest rates were high during the bubble. They had been for a long time. In fact the high interest rates track the rise and fall of the bubble almost perfectly.

Quote:


So that's where you get your understanding of economics, youtube videos? You need to get your facts straight, and youtube is not the place to do it. Whatever luntatic idea someone believes, they can always find a youtube video to back them up. It is only useful for fooling people, because it is so much easier to gloss over the facts.

Quote:


People talk about both. Communists talk about total control of everything. Extremeists from the other end talk about laissez faire capitalism.

I think you'll find Bush was preoccupied with things other than the economy Skippeeeeeeeeeeee and regulation of the banks etc are not exactly what America is about.

BTW your lies...
I'm not a rightard.  I'm a Lefty.
idiot!
Also many people have mentioned Clinton's culpability.
Ignoramous!!!!!!!!!!!!!
Flame away Troll, it'll never make you right.
Living up to your name Skippeeeeeeeeeeeeeeeeeeeeeeeee