Who Caused the Economic Crisis? Nice Summary

15 posts / 0 new
Last post
krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
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.

brandenism's picture
brandenism
Status: Member (Offline)
Joined: Sep 14 2008
Posts: 21
Re: Who Caused the Economic Crisis? Nice Summary
Great informational summary as usual Krogoth.
joe2baba's picture
joe2baba
Status: Martenson Brigade Member (Offline)
Joined: Jun 17 2008
Posts: 807
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?
JMCSwan's picture
JMCSwan
Status: Bronze Member (Offline)
Joined: Oct 19 2008
Posts: 40
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

Majormoney's picture
Majormoney
Status: Member (Offline)
Joined: Oct 9 2008
Posts: 21
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.

Maenad's picture
Maenad
Status: Bronze Member (Offline)
Joined: Oct 18 2008
Posts: 43
Re: Who Caused the Economic Crisis? Nice Summary

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

Maenad 

Maenad's picture
Maenad
Status: Bronze Member (Offline)
Joined: Oct 18 2008
Posts: 43
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 

tom.'s picture
tom.
Status: Gold Member (Offline)
Joined: Aug 18 2008
Posts: 345
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.

krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
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.

 

 

 

 

 

 

 

 

 

 

 

krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
Medication

JMCSwan,

 

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

 

 

 

krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
Re: Who Caused the Economic Crisis? Nice Summary
Hello everyone! I took this from NEWSWEEK online, it's not my words, it's just a quick summary. I like to show what the press is reporting, like I just posted another story showing how someone wrote Paulson's bailout will help the goverment make money. I am just showing an opposite view, so chill.
rlee's picture
rlee
Status: Silver Member (Offline)
Joined: Sep 18 2008
Posts: 148
Re: Who Caused the Economic Crisis? Nice Summary

Newsweek has done a lovely job of showing the sheeple what a fabulously professional investigative reporting source they are!  And, anybody reading the story will take from it whatever political viewpoint they already hold and use the parts of this story needed to support that viewpoint.  

Now my take - blaming in whole or part the victim is sleezy, regardless of their participation.  If that were a valid argument, not one single confidence scam (ie. pigeon drop, lotto exchange, etc.) would ever yield an arrest, since those crimes require the victim's participation.  For that matter, you could point to almost every member on the list as some form of "victim" or "unwitting participant" in a much grander scheme.  The elements involved here are groups all easily persuaded and manipulated.  This crisis was orchestrated, started, and furthered by the same subjects who have created EVERY such crisis, the central bankers.  I found it interesting to note that they are noticeably absent from the list!

"The best conspiracies can never be proven, that's why they work!"

caroline_culbert's picture
caroline_culbert
Status: Platinum Member (Offline)
Joined: Oct 2 2008
Posts: 624
Re: Who Caused the Economic Crisis? Nice Summary

 

Let's assume this (collapse) is a big conspiracy...then

1. who is at the end of the line?

2. the most important question is... what are they doing this for (because I'm assuming it has little to do with money since "they" have more than is needed)?

2a. What is their intention or motivation?

2b. Is it finally going to happen?  A "New World Order"?  Will it be World Domination?  Was this 'World Economic Collapse' planned?  Many believe previous economic collapses were carried out systematically.  Why not this one?

If it was planned, I don't see how it could've been so hard to carry out "their" mission.  "They" don't have to worry much about the underdeveloped countries.  "They" only have to make sure the developed countries are controlled; And how does one control a nation?... easy... give them exactly what they ask for-
Television (http://www.apa.org/releases/childrenads.html), 
Advertisements (http://www.apa.org/monitor/jun04/protecting.html
Fast Food (http://www.apa.org/monitor/dec01/fastfood.html),
Pharmacology ("Artificial Happiness", by Ronald W. Dworkin, M.D., Ph.D.) & (http://archive.newsmax.com/archives/articles/2005/4/18/94035.shtml),
Credit Cards,
Stimulus Checks,
Religion (faith), &
Obama (hope).
--Maybe the Matrix movie isn't so far removed as I had thought.
--So all you people who want to wake people up wont be able to do this overnight.  These people have been conditioned since they were born.  If you know anything about psychology, then you know that it is very hard to "change" people.  It boils down to the nature vs. nurture argument.  Just as any urban, uneducated thug is hard to "change", it is equally so for the middle class, white suburban family.  Everyone has been brought up or "conditioned", for the most part, by their environment.  This means that the middle-class whitey is also prone to adverse conditioning set for them by the very things eminating from their rooms... the t.v., the playstations, the DS, the ipods, the cell phones, the computers (online gaming- World of Warcraft & Dungeons and Dragons have consumed, millions of people worldwide, like a disease).  Who on earth would want to READ a book with so much media vying for their attention?
--I think parental guidance is insufficient as it is, but now with the job market caving in on itself I believe that children will have less guidance and oversight as parents need more working hours and double incomes to make ends meet.  We can now start the meaningless process all over again where we condition our children to the very vices we have subverted ourselves to.
--In many ways we are diseased.  I think the, cure, is being able to think, critically, and follow through with critisms where/when necessary.
--I think the only person who should have the right to vote or obtain any "adult" priviledges (such as credit cards/mortgages) is IF they have been educated first (gov. mandated- why have a gov. if they are not willing to protect their citizens?).  I think, age, is a poor indicator of responsibility and it seems to me that the only factor preventing anyone from applying or obtaining "rights" to a particular outcome is one's age.  I believe, the only probable factor required in obtaining any priviledge, is that of sufficient knowledge of the object desired, from a credit card up to the seat of presidency.
--I love Obama as well as the next democrat, but I think a more intelligent president would have been Ron Paul (http://en.wikipedia.org/wiki/Ron_paul).  Again, with the help of the boob tube and almost a billion dollars in advertising, anyone would've made it as far as Obama- think about it.
--I like your new pic, Krogoth! :-)
caroline_culbert's picture
caroline_culbert
Status: Platinum Member (Offline)
Joined: Oct 2 2008
Posts: 624
Re: Who Caused the Economic Crisis? Nice Summary

JMCSwan,

You scare people... And I don't think you scare people in a good way either.  You may have very good intentions of "informing" the masses, or at least the people visiting Chris' site, but I definitely think your tactics of disagreeing with people are tasteless and ineffective. Unlike a nice breath of fresh air, you like to spread your “prophesy” notion like wildfire. I like Chris Martenson's methods. His messages don't elicit a sense of having information shoved down my throat.

On a lighter note, it's nice to see the Christian Fundamentalists, such as your “Greean Farmers Eco-Geo Resources" site, spreading the economic news as well. After perusing the site and watching a few minutes of the video, near the bottom of the website, I lost my appetite for any message the site brings. Again, what differentiates your website from Chris' is that Chris brings forth numbers and data collected while your website “prophesizes”, based on the bible, what will happen next.

I think most people guess, predict, “prophesize” what might happen in the future, but most of us take these predictions with some grain of salt. This is where critical thinking comes, in which you so vehemently advocate.

Instead of shoving your "prophasizing" down our throats, why don't you let us digest what we have in our stomachs first? Also... let us eat what we want to eat, i.e., we came to Chris Martenson's website for a reason. Likewise, we didn't go to your site for a reason.

If your message is that damn important then you might try a more subtle approach. After all, this is a forum. If, we, physically, were collected in a forum, or conference, we might not want to hear you regardless of how loudly you screamed.... We would probably think you were crazy. Another way to put it... your prose and/or your style has been well noted and observed but screaming your messages at us and belittling others does not give your messages more credibility. At best, it may give you less.

All the best,

Caroline

Akrotiri21's picture
Akrotiri21
Status: Member (Offline)
Joined: Jul 10 2008
Posts: 15
Re: Who Caused the Economic Crisis? Nice Summary

Krogoth,

 

I appreciate your posting these sorts of articles for discussion.  I would only add that for something like the Andy Kessler piece -- the one arguing that the goverment will actually end up making money -- I would be grateful if folks explained -- very precisely -- why they think he is mistaken.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments