Who Caused the Economic Crisis? Nice Summary

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  • Thu, Oct 30, 2008 - 04:39pm

    #1

    krogoth

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    Who Caused the Economic Crisis? Nice Summary

Nice summary of the mess we are in- 

Newsweek.com in cooroperation with FACTCHECK.ORG

MoveOn.org blames McCain advisers. He blames Obama and Democrats in Congress. Both are wrong.

The Real Deal
So who is to blame? There’s plenty of blame to go around, and it doesn’t fasten only on one party or even mainly on what Washington did or didn’t do. As The Economist magazine noted recently, the problem is one of "layered irresponsibility … with hard-working homeowners and billionaire villains each playing a role." Here’s a partial list of those alleged to be at fault:

  • The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.
  • Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.
  • Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.
  • Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.
  • The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families.
  • Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates.
  • Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.
  • Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral.
  • The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.
  • An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic.
  • Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up.

The U.S. economy is enormously complicated. Screwing it up takes a great deal of cooperation. Claiming that a single piece of legislation was responsible for (or could have averted) the crisis is just political grandstanding. We have no advice to offer on how best to solve the financial crisis. But these sorts of partisan caricatures can only make the task more difficult.

  • Thu, Oct 30, 2008 - 05:45pm

    #2

    brandenism

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    Re: Who Caused the Economic Crisis? Nice Summary

Great informational summary as usual Krogoth.

  • Thu, Oct 30, 2008 - 07:08pm

    #3

    joe bender

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    Re: Who Caused the Economic Crisis? Nice Summary

of course you know the economist is the mouthpiece for the  rothschilds. shouldnt you be taking care of the baby?

  • Thu, Oct 30, 2008 - 08:17pm

    #4

    JMCSwan

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    Re: Who Caused the Economic Crisis? Nice Summary (Says Who?)

Interesting ‘doublethink’ ??? signature Krogoth, considering your agreement with Newsweek!

In my opinion — clearly you disagree; but anyway here it is: If you ain’t got the balls to go deeper in critical analysis, than Matrix Big Brother Propaganda NewsWeek, you are on your knees in many more ways than one. Generally, for those of us unplugged from the system, someone who ain’t on their knees and who is actively demonstrating in words and action, dying standing is someone like Milton "Bill" Cooper

You want a real substantial in depth analysis — besides Chris’ crash course, that adds volumes to Chris’s Crash Course — read Final Warning: History of the New World Order, by David Allen Rivera


On another note; interesting Rochester Musical Chairs synchronicity from: Investors Losing Faith in Citigroup

"Citigroup right now looks like it is still standing in a game of musical chairs where everyone else has a seat," said Lawrence Creatura, portfolio manager at Clover Capital Management in Rochester, New York, which oversees about $2.5 billion and owned shares of Citi as recently as the end of June.

JMCSwan

  • Thu, Oct 30, 2008 - 09:05pm

    #5
    Majormoney

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    Re: Who Caused the Economic Crisis? Nice Summary

The list of "causes" involves the players in the fraudulent money game.  But the real cause is the nature of the game itself as it is played today.

All of the fiat money systems of the world are bogus.  They are not backed by the confidence of individuals in the Marketplace.  They are backed only by the tax collectors’ guns.  Coercion cannot be the cause of confidence; coercion destroys confidence.

None of this would be happening–none of the listed "causes" would be problems–in the presence of the ultimate symbol and substance underlying confidence in the Marketplace: the Gold Standard.

The ultimate cause is the absence of the Gold Standard.  All the other "causes" are secondary, incidental, and trivial.

Again, there are no rational alternatives to the totally free Marketplace.

  • Thu, Oct 30, 2008 - 09:51pm

    #6

    Maenad

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    Re: Who Caused the Economic Crisis? Nice Summary

Oi! Babies do sleep you know! Mine’s sleeping right now. Tongue out

Maenad 

  • Thu, Oct 30, 2008 - 10:13pm

    #7

    Maenad

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    Re: Who Caused the Economic Crisis? Nice Summary

I find it galling that anyone would blame the home owners who on the most part lack the education and the information to make a truly informed choice. The entire system is stacked against them. Blaming the victim is a disgusting shirking of responsibility, an absolute asshole act.

Maenad 

  • Thu, Oct 30, 2008 - 10:34pm

    #8

    tom.

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    Re: Who Caused the Economic Crisis? Nice Summary (Says Who?)

[quote=JMCSwan]

You want a real substantial in depth analysis — besides Chris’ crash course, that adds volumes to Chris’s Crash Course — read Final Warning: History of the New World Order, by David Allen Rivera

[/quote]

Great website JMC. Can’t wait to read it all, thanks.

  • Fri, Oct 31, 2008 - 01:25am

    #9

    krogoth

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    Economic Crisis Nice Summary

LOL, yea this article does not go back that far, and nobody writing for major publications lately don’t seem to want to show the whole tree and its roots, just the fruit it’s bearing now. Also, these are not my words, it’s from Newsweek.

 My new baby sleeps a lot, so I guess I am very lucky. My first son needed attention every 2 hrs. when we brought him home, so It gives me more time online.

I doubt this will last, and I will miss you all, LOL.

 

 

 

 

 

 

 

 

 

 

 

  • Fri, Oct 31, 2008 - 01:27am

    #10

    krogoth

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    Medication

JMCSwan,

 

Please remember to take your medication before you post, your starting to scare me.

 

 

 

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