Posted on 03/19/2016 3:58:59 PM PDT by TangibleDisgust
I have always known in my gut that the 2008 recession was deliberately caused by the democRATS as an election year strategy. They learned in 1992 that a bad economy was enough to get a democRAT elected to replace a republican incumbent. In 2006, the democRATS took control of Congress and began to put this strategy into action.
However, a quick look into the history of the 2 bills I had previously suspected to be the root cause (Sarbanes/Oxley and Frank/Dodd) shows that one was passed in 2002 and the other in 2010, so neither one of those directly precipitated the recession.
Which leads to my question. What are the legislative fingerprints that prove this recession was not caused by Dubya?
The entire millennial generation has been spoon-fed lies about the causes of this recession and Hollywood has been desperately trying to pin it on republican support of Wall Street (which we all know is a myth. Wall Street gives more $$$ to the democRATS).
Has anyone written up a solid and not too "inside the beltway" explanation for how the financial crisis started? If so, where? If not, what do you think caused it specifically? I know it was the subprime mortgage meltdown and the law changes that allowed these risky loans to be bundled and sold like bonds, but I am looking for more specific legislative causes.
Also, has anyone ever discovered the identity of the person who was trying to crash the markets during the period of time when McCain suspended his campaign to rush to DC so that he could pretend to look presidential?
I recently ran into a very opinionated millennial (Bernie supporter no doubt) and I wanted to point him in the right direction to see that the recession was not really caused by Dubya’s policies.
Try looking up articles from mises.org pertaining to the financial crisis.
I disagree. Democrat policies brought it about. But the crash was going to happen one day regardless. It’s the game of hot potato and bush got stuck with it. remember republicans called out the dems about the impending crash and they were called “RACISTS” by jerks like Rangel and Fwank.
If anything, if they had the power, they would have crashed the economy during Kerry vs Bush of 2004.
ultimately, the cause of the crash was the notion that owning a house is a constitutional right, and only racism or other associated discrimination prevents everyone from owning a house.
There are decent starting points:
https://mises.org/library/subprime-crisis
https://mises.org/library/bailout-reader
Liberal interference in a free market caused the crash; laying blame on one particular party does seem slightly unfair, both parties welcomed the insanity and were equally quick to point fingers at others rather than their own votes.
Heh, noob.
Read schuck fumers IndyMac letter...
Then ask yourself why are you reading this letter for the first time.
http://www.americanthinker.com/articles/2011/12/the_fall_of_the_house_of_frank.html
Democrats did it.
I was at the beach in August, 2007 when I read that home foreclosures had begun to seriously take off, with people walking away from underwater mortgages in California. That’s when it began. So many derivatives sold as risk-free, and they weren’t, hundreds of billions if not trillions of dollars worth. That’s the finance part. People had been living beyond their means for years on refinancing their mortgages and that ground to a halt. That’s the US consumer part, or the beginnings of it.
I may just be a rube, but even I knew that things couldn’t last when you had first time home buyers walking out of a closing with a check in THEIR hand
.
Some things have never been explained, such as the mysterious sell commands that helped crash the market, and the fact that certain Democrat politicians spread rumors that certain financial institutions were in trouble, which then led to runs and collapses.
I am sure someone like Soros was behind some of the market shenanigans.
Barney Frank
Community Reinvestment Act
Libtard social engineering is the cause. In 1994, Clinton launched the National Partners in Homeownership, a private-public cooperative with one goal: raising the number of homeowners across America. The partnership would achieve its goals by making homeownership more affordable, expanding creative financing, simplifying the home buying process, reducing transaction costs, changing conventional methods of design, and building less expensive houses, among other means.
In just a few short years all of the venerable rules governing the relationship between borrower and lender went out the window, starting with the elimination of the requirements that a borrower put down a substantial amount of cash in a property, verify his income, and demonstrate an ability to served his debts.
IMHO, a strong argument can be made that NAFTA was at the root of the collapse. People were given loans for homes which they then took out HELOCS on. Then they lost their jobs and everything just went to shiite from there. Clinton signed NAFTA and sold it to the American people but the George H. Bush administration had a big hand in creating it.
The subprime mortgage crisis had its roots in the Clinton administration. In order to understand how it grew, and then suddenly caused a collapse, you have to understand logarithmic functions.
When you perturb a system, at first, there is little visible effect. A lot may be going on, but the effect on the system is negligible. As the perturbation grows, it eventually causes an inflection point: its effects start showing up in the system, roughly in a linear relationship with the size of the perturbation. At some point, however, the perturbation reaches the maximum effect size, causing another inflection point. This second inflection point crashes the system.
With the subprime crisis, the perturbation (the number of subprime mortgages being issued) growth was affected by a few factors such as monetary policies issued under different administrations. But it kept growing to crisis point. The crisis eventually erupted when the Democrat congress took over in 2006 and started their uncontrolled spending spree.
Most biological/natural systems operate on logarithmic principles. So do economic systems. Thus, the effects of a monetary policy NOW are never the result of recent changes: they are the result of monetary policies enacted years ago. Furthermore, the economy can never be truly controlled by government: in order to do so, the government would have to be omniscient, which it is not. There are too many factors that go into shaping the economy for it to be completely controlled.
There was a book that came out a few years ago called Dark Pools by a man named Peterson (I think.) The stock market is absolutely manipulated and controlled by a small cabal of very powerful people. Think Soros.
Yes, I believe that the market meltdown was fueled by the democrats desire to get their boy king elected. It is too bad the Lehman Brothers and Bear Stearns had to be casualties. I know people who worked for them, and they did not deserve to lose their jobs and get slammed like that.
Everything that we see is an illusion.
Republicans got on board because homeowners vote more Republican than renters, which are usually Democrats. However correlation is not causation. The new homeowners were posers that didn't know how to perform house maintenance and their houses fell apart.
A similar example of correlation is not causation is the myth that college degree holders earn more money. No, smarter people earn more money. Government run colleges fry brain cells rather than grow new ones.
Government backed entities “hypothetically” backstopped a market for mortgage paper irrespective of credit quality. Government entities did back many mortgages, but not enough, creating private sector exposure. Business people over-traded securities based on that. Once defaults due to poor credit quality mounted, those securities lost tremendous value. Mortgage lending ceased. Homes became non-marketable. No new homes were built. No one modeled or forecasted for that happenstance. Construction, appliances, building materials, home security systems, roofing, swimming pools, etc. etc. etc. all suffered. All of their suppliers suffered. Spreading contagion to autos, computers, even cellular.
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