Economic Crisis Explained

[rjd970]

One of the better breakdowns of how it went down.

How a 'perfect storm' led to the economic crisis - CNN.com

 

[VolsNSkinsFan]

in the 90s we speculated our way to wealth
in 2000's we borrowed our way to wealth
and in 2010s we will print our way to wealth

BTW... MBS and CDOs arent new as they have been around since the 80s

 

[OrangeEmpire]

I can explain it..... government = failure!

 

[MG1968]

hmm, no mention of Fannie Mae/Freddie Mac, nor of their willing accomplices in Congress, chiefly Barney Frank and Chris Dodd who resisted every single effort to reign them in.

no mention of ACORN's use of the Community Reinvestment Act as a cudgel to force banks to loan money to people otherwise unqualified for a mortage.

to his credit, the author doesn't mimic the BS "8 years of Bush policy".

 

[orangeblooded2]

I can explain it..... government = failure!

I can explain it better.


WALL STREET=GREED! :worship:MONEY

 

[VolsNSkinsFan]

Not really sure if it was greed.

Stupidity yes

If you had a piece of paper that a really rich guy or bank/financial institution wanted and in the process of selling that piece of paper you got a huge commission/bonus, would you do so, over and over again? Of Course!

Now the problem was that these guys didnt realize that what they were doing would lead to this economic disaster. If they had know that they and their colleagues would be unemployed in a year or two, they wouldnt have done so. IMO

 

[volinbham]

I can explain it better.


HUMANS=GREED! :worship:MONEY

fyp

 

[orangeblooded2]

fyp

I don't do a lot of texting......?

 

[MG1968]

I don't do a lot of texting......?

fyp = fixed your post

the greed wasn't just on Wall Street.

the people who lied on their mortgage applications were greedy.

the banks and mortgage companies who gave liar loans were greedy.

Congressmen who did nothing to stop Fannie and Freddie while accepting hundreds of thousands in campaign contributions were greedy.

the Wall Street geniuses who saw the potential problems years ago and packaged subprime mortgages then sold them all over the world were greedy.

 

[orangeblooded2]

fyp = fixed your post

the greed wasn't just on Wall Street.

the people who lied on their mortgage applications were greedy.

the banks and mortgage companies who gave liar loans were greedy.

Congressmen who did nothing to stop Fannie and Freddie while accepting hundreds of thousands in campaign contributions were greedy.

the Wall Street geniuses who saw the potential problems years ago and packaged subprime mortgages then sold them all over the world were greedy.

Sounds like everyone who was't involved.Are going to be the ones to pay for it.

 

[MG1968]

Sounds like everyone who was't involved.Are going to be the ones to pay for it.

bingo, and the government's "solution" is going to make a bad situation even worse.

 

[T-TownVol]

bingo, and the democrat's "solution" is going to make a bad situation even worse.

fyp

 

[droski]

Not really sure if it was greed.

Stupidity yes

If you had a piece of paper that a really rich guy or bank/financial institution wanted and in the process of selling that piece of paper you got a huge commission/bonus, would you do so, over and over again? Of Course!

Now the problem was that these guys didnt realize that what they were doing would lead to this economic disaster. If they had know that they and their colleagues would be unemployed in a year or two, they wouldnt have done so. IMO

agreed. i very much doubt the average wall streeter wanted this outcome for the economy since he is probably now unemployed.

 

[VolByBirth]

hmm, no mention of Fannie Mae/Freddie Mac, nor of their willing accomplices in Congress, chiefly Barney Frank and Chris Dodd who resisted every single effort to reign them in.

no mention of ACORN's use of the Community Reinvestment Act as a cudgel to force banks to loan money to people otherwise unqualified for a mortage.

to his credit, the author doesn't mimic the BS "8 years of Bush policy".

Neither of these drove this crisis. I hope you would agree that this economic crisis isn't on one side of the political spectrum....with that being the case, only pointing out things that can be linked to Dems really weakens your argument. Guilt is rife on both sides of the fence.

You want one of the "unsaid" culprits? Take a look at the Graham, Leach, Bliley Act -- then look closely at what is mentioned many times in this article -- "leverage". The GLBA allowed overleveraging in an unprecented and, now proven, reckless nature.

The market is going through an all out massive de-leveraging and recapitalization effort by the entire financial sector. Since there are no investors to recapitalize these banks -- the only player left is the government. You may not like it, but it's necessary.

 

[f1ip]

Neither of these drove this crisis. I hope you would agree that this economic crisis isn't on one side of the political spectrum....with that being the case, only pointing out things that can be linked to Dems really weakens your argument. Guilt is rife on both sides of the fence.

You want one of the "unsaid" culprits? Take a look at the Graham, Leach, Bliley Act -- then look closely at what is mentioned many times in this article -- "leverage". The GLBA allowed overleveraging in an unprecented and, now proven, reckless nature.

The market is going through an all out massive de-leveraging and recapitalization effort by the entire financial sector. Since there are no investors to recapitalize these banks -- the only player left is the government. You may not like it, but it's necessary.

Great post!!
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