Because one subprime mortgage collapse is never enough.
LOL. Here we go again.
You are righter than you know. As a 30 year veteran of the mortgage industry both underwriting and as a mortgage broker I can tell you that these cycles are never ending. When rates go up and business slows down the first thing that happens is they come around and tell the underwriters to loosen up. Then the no doc loans come back and the 97% and 100% loan programs. As 30 year rates rise the ARM’s get hot again. Less than perfect credit programs come back.
The one and only thing to remember is that lenders are in business to lend money. If they can’t lend money they go broke.
“Because one subprime mortgage collapse is never enough.”
Perhaps the Democrats have concluded Hillary cannot run in 2016 for health reasons and know the Republicans will have a high likelihood of winning in 2016 without Hillary in the race. The economy still weak and there are multiple asset bubbles resulting from Fed money printing and the irresponsible fiscal policies of Bush and Obama which has ballooned the federal debt. The Chinese, Russians and Iranians are all working to remove the dollar as the reserve currency. Loss of reserve currency status, high inflation from money printing, and the bursting of asset bubbles could send the economy into an economic collapse that makes 2008 look mild.
Could it be the Republicans are walking into a trap? Imagine they go ahead and nominate Jeb Bush to run against the presumptive Democrat nominee Hillary Clinton. By May 2016 the Democrat and Republican primary races should be settle with Jeb and Hillary at the top. Hillary steps down in mid to late May for medical reasons and basks in the public concern about her well being. The Democrats then scramble and the power brokers settle on Biden who is nominated as the people’s candidate in the “open” convention. Bush is nominated in the Republican convention as expected. Bush goes on to run a decent moderate campaign. A few Biden gaffes, Obama/Biden fatigue, and enough conservatives showing up to keep Biden from being elected are enough to cause Bush to win a narrow victory. In February 2017, a month after the inauguration, Soros working with the Russians and Chinese precipitates a run on the US banking system. The Keynesian monetary levers Bush and the Fed attempt to use don’t work and the banking system collapses plunging the US and the world into a deep economic depression. Bush and the Republican Party are blamed by the media and the people for a generation. The Democrats win overwhelming majorities in the House and Senate in 2018 and use those majorities to block any free market based initiatives to stimulate the economy. In 2020 a bankrupt nation goes to the polls and elects a no apologies Marxist Democrat as President. From that point on demographics control future elections, ensuring one party rule.
Our government and Federal Reserve economic policies since 2000 make a severe economic adjustment a certainty. It is a question of when, not if. If you have the ability to delay the collapse until you are out of power, and those you are indebted to want the collapse and have the power to trigger it, why wouldn’t you time it to your political advantage?
Well said. They never learn, do they? Maybe this is the only thing they have to stave off a much deeper crash, which is almost certainly inevitable.
Some people never learn.
Good Lord. Even a 12 year old could figure this out. Debt was the problem so debt is the solution? I think he has some Goldman Sachs or JP Morgan suits on his staff wispering in his ear.