[WOSG]

My theory is the economy started to unravel once it became clear the Bush tax cuts would not be extended past 2010. That meant the upper income folks knew that the ‘end was nigh’ and investment and other decisions started getting pulled in.

a recession was then inevitable.

[Alberta's Child]

My theory is that the "Bush tax cuts" were never intended to extend past 2010 -- so the expiration of those tax cuts had almost no bearing on the economy at all.

The 2010 sunset provision was included in the original legislation simply to allow members of Congress to cover their @sses and institute a massive tax hike without having to vote on it.

My theory is that the severe economic contraction was the inevitable -- and well-planned -- result of idiotic fiscal policy under which the U.S. government implements massive new domestic spending programs while at the same time spending hundreds of billions of dollars on major military campaigns overseas.

What you're seeing now is no different than the last time this idiocy took place (LBJ's combination of the "Great Society" and the Vietnam War).

[patriciaruth]

It all started after McCain's acceptance speech was so bad that investors realized Obama was going to win. Because Obama had declared he would raise capital gains taxes, investors decided to get out while they could still pay only 15% on their gains.

Then when middle America saw the IRA values dropping like a stone, the Boomers, who are retiring soon or already, stopped their usual prodigal spending that used to keep the economy afloat.

Add that to the Democrats corrupt feeding at the pig trough of Fannie and Freddie and certain banks and the house of cards they were standing on began to come down.