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the real cause of the financial meltdown

cause of financialmeltdown

  • Total voters
    21
beerftw

beerftw

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id simply like to know where people stand,as people become more educated on the matter their opinions seem to change
 
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deregulation, corporatism, corruption, and the ups and downs of capitalism.
 
Most of the above + MBS's and CDS's, 'the bankers', etal.
 
income has stagnated for several decades, but easy credit masked the effects. when easy credit imploded, game over.
 
Stocks dropped. A lack of liquidity. No confidence in mortgages. No confidence in AIG being able to back defaults. Bank collaterals insufficient to maintain normal operations. As mortgage values plummeted, the bankers were trapped by Federal Reserve requirements. Couldn't make loans. Plummeting values of mortgage/real estate portfolios distressed many pension plans. There had been no investment by gov't in job development. Just wars on the credit card. Car business died. TARP built some new business and created some demand. We were really fortunate that we didn't have a 1930's style depression. The money printing presses have created a false sense of security. That'd be confidence, like a Confidence Game.
 
im surprised gwd deregulationgot2 votes,it was a trick there to see if people actually knew.bush added more regulations than he deregulated,and all bank deregulation happened under clinton and regan,not bush.

the stupid trap works:shock:
 
Can I limit my blame of Bush to his not speaking up when even crappy little condos became "worth" $500K and leading America away from this irrational behavior. It resembled the Tulip craze.

Maybe that's not the job of a President, but it should be.

Other than that, there's so much blame to go around that it's hard to identify it all in retrospect.
 
The spending, both sides spend far too much and that's why we are in a financial meltdown and exceeding debt ceilings nearly every year.

Edit: if you are discussing the financial meltdown in the economy that started off the recession I would say it was largely fueled by bad loans/investments.
 
The repeal of G-S was the main culprit; there were a lot of factors in so many of them becoming too big to fail when they did, all at the same time, but G-S started the snowball rolling down the hill.
 
specklebang said:
Can I limit my blame of Bush to his not speaking up when even crappy little condos became "worth" $500K and leading America away from this irrational behavior. It resembled the Tulip craze.

Maybe that's not the job of a President, but it should be.

Other than that, there's so much blame to go around that it's hard to identify it all in retrospect.
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im not gonna give away answers,its a poll.

i simply pointed out the gwb deregulaion was a ignorance trap because bush didnt deregulate the financialsector.i put that there after reading numerous op ed pieces blaming bush for starting the crisis by signing the repealof glass steagall and the cfma,problem was both occured under clinton,i also noticed alot ofop ed pieces belive bush stepped into office in jan 21 2000 and obama stepped in jan 21 2008,showing high levels of ignorance among people on the internet.

btw chinese being the problem may be a ignorance trap too,anything gwb related not covered under deregulation counts as other.
 
Sorry, It was a philosophical question, not a real question. Some days I'm just too dramatic.:)

beerftw said:
im not gonna give away answers,its a poll.

i simply pointed out the gwb deregulaion was a ignorance trap because bush didnt deregulate the financialsector.i put that there after reading numerous op ed pieces blaming bush for starting the crisis by signing the repealof glass steagall and the cfma,problem was both occured under clinton,i also noticed alot ofop ed pieces belive bush stepped into office in jan 21 2000 and obama stepped in jan 21 2008,showing high levels of ignorance among people on the internet.

btw chinese being the problem may be a ignorance trap too,anything gwb related not covered under deregulation counts as other.
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Most of the questions are merely contributing factors. The real cause is our society adopting casino capitalism as legitimate, and dropping actual investment in productive enterprise.
 
It's mostly deficit spending, corrupt politicians and lack of responsibility in congress.
 
Deregulation, failure to re-regulate when it was obvious that it was a mistake, a government that ignored the warning signs, people who were idiots and thought they could live beyond their means, dishonest banks without oversight, there's more than enough blame to spread around.
 
beerftw said:
im surprised gwd deregulationgot2 votes,it was a trick there to see if people actually knew.bush added more regulations than he deregulated,and all bank deregulation happened under clinton and regan,not bush.

the stupid trap works:shock:
Click to expand...

Wow, some one actually beleives that quantity of regulations is the important factor, and not what the regulations actually do.
 
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