The end of the affair

Discussion in 'News / Current Events' started by Crabtownboy, Nov 24, 2008.

  1. Crabtownboy

    Crabtownboy
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    http://www.economist.com/world/unitedstates/displayStory.cfm?story_id=12637090&source=hptextfeature

    Note, mortgate debts rose to 127% of disposable income, from 77% in 1990. That did not happen in just the last two years.
     
  2. donnA

    donnA
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    Didn't happen in the last 8 years either, happened during a democratic presidency, just started to show up now.
    economic situations don't just happen over night, and when they do it takes years for us to experience it.
     
  3. Crabtownboy

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    Actually more was just piled on during the last 8 years and we finally reached the tipping point.
     
  4. Revmitchell

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    The Repubs called for action on poor book keeping and potential fallout form these poor loans but the Dems just viciously defended these programs that are now the primary cause for the current financial crisis.


    http://www.youtube.com/watch?v=_MGT_cSi7Rs

    This lies squarely in the lap of the Dems
     
  5. Andy T.

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    I think Alan Greenspan and the Fed might be the biggest culprits. They kept lowering and lowering interest rates to an unhealthy level in the 90's. They kept doing it in the 2000's too. Bottom line: Credit was way too easy to access which led to this bubble bursting. It created artificial growth based on easy credit and now we are paying for it. Thing is, both Clinton and GWB loved the short-term outcome, because it made their economies look better than what they really were. Meanwhile, we were all living in make believe doll houses made out of Monopoly money.
     
  6. Crabtownboy

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    But the Republicans were in the majority in both houses most of the years this was building up ... so there is fault on each side.
     
  7. windcatcher

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    BINGO!

    It is a process of society's own self indulgence:

    Easy loan practices: Loan brokers making handsome commissions for qualifying borrowers: Low interest rates: Fractionalized banking with decreased regulation: Derivative speculation and overconfidence in the equity market growth: A fiat paper currency where printing more money was not tied to any intrinsic value. Then add to that the fact that the baby boom of WW II is now retiring and the promotion of 'reverse mortgages' for extending one's lifestyle or for fulfilling those set aside dreams of the working years to now visit foreign lands or RV and camp across our country, etc.. We've got 'a perfect' economic storm ahead.

    Unfortunately, we also lack the independance of the agririan society which existed back during the depression and the dustbowl famines of yesteryear which kept people fed inspite of hard times and scarce supply.... The work force has been deprived of the blessings of working and consuming numbers due to aborted babies, and we've regulated, taxed, and increased the labor overhead of industry within our own country forcing a migration of industry to other countries, while preferring the cheaper consumption of products imported from outside.

    I've often wondered at the 'fairness' of paying a foreign laborer the wages I would not wish to work for (in conditions of environment) so that I could consume it upon my own desires. This is not a partisan thing! This is society's reward of reaping that which we've sown..... materially, which is also reflective of our spiritual depravity.
     
    #8 windcatcher, Nov 25, 2008
    Last edited by a moderator: Nov 25, 2008

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