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Here's What's Happening to the Economy
The American Thinker ^ | March 12, 2009 | Randall Hoven

Posted on 03/12/2009 2:16:54 AM PDT by Scanian

think I have it figured out, roughly. And I'm ready to assign blame. If my narrative is not exactly true, it is a hypothesis that appears to fit the facts. This particular hypothesis is conspiracy-free, although I still think something is really fishy about the timing of the financial crisis, peaking as it did just when McCain started leading in the polls. But until we see some smoking guns, no conspiracy theory from me.

(By the way, I am answering my own question of March 1, 2009 : "How Did This Happen?")

What we have is a four-tiered avalanche.

Tier 1. The US housing market was a bubble that burst, which can be blamed mostly on Democratic politicians. Tier 2. That led to a global financial crisis because so many investment and insurance firms around the world traded in mortgage-backed derivatives that no one understood. The blame for this part is complicated; more below. Tier 3. That financial crisis led to an over-reaction on the part of politicians. The TARP legislation in the US in particular provided the double-whammy of being largely ineffective in its own right, and signaling to investors everywhere that it is time to panic.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Miscellaneous
KEYWORDS: bailouts; bho44; bhoeconomy; democrats; economy; first100days; stimulus

1 posted on 03/12/2009 2:16:54 AM PDT by Scanian
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To: Scanian

Shumer and probably Soros appear to be responsible for the timing of it. The electronic bank run back in September that drained 500 billion from the banks in a few hours in the middle of the night could only have been pulled off by Soros. He controls many times the amount money he “owns” and heavily influences several times what he controls. Senator Schumer deliberately triggered the IndyMac run with a speech. The response to the financial meltdown WAS/IS a conspiracy for real, a conspiracy to get as much money into the pockets of the money managers and officers at Goldman Sachs as possible. I am sure lots of that bailout money is going offshore to sit in gleaming yellow bars in safe Cayman Island and other discrete banks.


2 posted on 03/12/2009 2:35:07 AM PDT by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: Scanian
"Tier 1. The US housing market was a bubble that burst,..."

*Cough!* ..."ownership economy," government funding for that. ...another scheme implemented to cover domestic vacuum left by trade deficits.


3 posted on 03/12/2009 2:40:04 AM PDT by familyop (As painful as the global laxative might be, maybe our "one world" needs a good cleaning.)
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To: familyop
Republicans, and others, Real Estate agents, land flippers, speculators, developers were all for floods of money coming into their ‘industry’ and making them rich.

That's why neither Bush, his administration, or the GOP pushed for any change in the scheme, the mechanism.

4 posted on 03/12/2009 3:09:05 AM PDT by Leisler
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To: Scanian

Good post. Helps to see things in a better perspective. Too bad he was afraid to name a few more names, but this seems a good start.


5 posted on 03/12/2009 3:36:43 AM PDT by Shery (in APO Land)
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To: arthurus

http://www.freerepublic.com/focus/news/2203068/posts?page=94#94


6 posted on 03/12/2009 3:46:18 AM PDT by EBH (The world is a balance between good & evil, your next choice will tip the scale.)
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To: Scanian

bookmark


7 posted on 03/12/2009 3:50:01 AM PDT by GOP Poet
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To: arthurus; Scanian
Summary:
  1. The Democrats, especially Housing Secretary Andrew Cuomo, caused the housing bubble.

  2. The bubble propagated thru the financial system via AIG, Lehman, et al in ways probably best described by psychology and chaos theory.

  3. It is certainly likely that the bubble burst when it did because Schumer and Soros deliberately punctured it for fun and profit. The market digested the news of the bubble, sinking but not entirely tanking.

  4. Paulson panicked, Bush followed, and a critical mass followed. Including John McCain. Even Thomas Sowell bought it.

  5. Obama was elected, and we are in the soup.

8 posted on 03/12/2009 4:15:30 AM PDT by conservatism_IS_compassion (The conceit of journalistic objectivity is profoundly subversive of democratic principle.)
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To: conservatism_IS_compassion

At least Sowell came pretty quickly back to his senses.


9 posted on 03/12/2009 4:17:58 AM PDT by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: arthurus

Most of our AM Radio heroes took in the bait and the hook. Only Rush, of the ones I can listen to, saw it all for what it is from the beginning. Bennett and Hewett, whose intellect and insight I have always, until now, respected highly are still in the bag. They “know” the government had to spend our great grandchildrens’ inheritance and income but they quibble about how it should be spent. It was a shock to hear Libertarian Boortz even bite at first. He seems to be thinking a little more clearly now, though I won’t know for sure because the local talk station just dropped him.


10 posted on 03/12/2009 4:25:40 AM PDT by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: arthurus

“Shumer and probably Soros appear to be responsible for the timing of it.”

Which puts the Sheeple in a panic just as McCain begins to take the lead over The Magic Socialist! MCain bungles it, now America is screwed.

MISSION ACCOMPLISHED...


11 posted on 03/12/2009 4:32:11 AM PDT by tcrlaf ("Hope" is the most Evil of all Evils"-Neitzsche)
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To: tcrlaf

I am going a different route here.

FEAR, UNCERTAINTY and DOUBT!!!

The media caused this to get Obama elected. They let the Genie out of the bottle and there is no way to put it back.

If the administration preaches hope instead of fear and the MSM broadcasts it, this is over in 3 months.


12 posted on 03/12/2009 4:46:47 AM PDT by EQAndyBuzz (“Are you better off than you were a month ago?”)
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To: EQAndyBuzz
FEAR, UNCERTAINTY and DOUBT!!!

While I agree that the media has played a big role, I also believe this whole downturn has been handled poorly by all politicians. They broke the confidence of consumers and the economy dropped off a cliff.

13 posted on 03/12/2009 4:49:37 AM PDT by Loyal Buckeye
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To: arthurus
Shumer and probably Soros appear to be responsible for the timing of it.

I also find the elimination of the "up tick" rule in 2007 to be very curious and the timing is very, very suspect. If you were going to short the market in a huge way, elimination of the up tick rule would be paramount.

The more this onion is peeled back the more it looks like a financial coup took place.....

14 posted on 03/12/2009 5:14:10 AM PDT by Thermalseeker (Government is not the solution to the problem. Government IS the problem - Ronald Wilson Reagan)
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To: Loyal Buckeye
The liberals recognized the opportunity. Always know as “tax and spend” but here was an opportunity to switch the two, become the “spend and tax” liberals.

If you have spent enough, then the need to raise taxes becomes imperative. Knowing that raising taxes will cause more chaos and more opportunity to bailout/nationalize industries.

Obama is following the script to a tee. Hopefully, the growing swell of resistance will thwart the liberals attempt to takeover everything.

15 posted on 03/12/2009 5:23:14 AM PDT by DaveArk
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To: arthurus
At least Sowell came pretty quickly back to his senses
. . . but the fact that even he was initially spooked tells you how far gone the thing was by that time.

The big picture is that via Cuomo, Bill Clinton is responsible for starting this snowball downhill. And that George W. Bush was so determined to set a "new tone" as to have made blunders by omission.

The situation required someone who would take a meat cleaver to all of Clinton's works. George W. Bush was too much like his father to ever have been that man.


16 posted on 03/12/2009 5:23:49 AM PDT by conservatism_IS_compassion (The conceit of journalistic objectivity is profoundly subversive of democratic principle.)
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