- Joined
- Nov 15, 2018
- Messages
- 875
- Reaction score
- 59
- Gender
- Male
- Political Leaning
- Undisclosed
The 2007 Subprime Mortgage crisis was the worst in the history of the U.S and the world, the unemployment level starts to rise, and millions lost their homes. In the U.S alone, home foreclosures spiked 81% in 2008, and they are up 225% compared with 2006 according to CNN money website. One of every 54 Americans, 3.1 million, received foreclosure filing in 2008. In fact, a number of 861.664 Americans lost their homes. Home prices in the U.S had been fallen 21%-40% from 2006 price levels. The 2008-2009 recession begins which the Global economy until now didn’t recover.
Governments and investors fear the recession for several reasons. First, it will lower the price of stocks, assets, and housing. Second, it will increase the unemployment rate. Third, it will affect the government tax revenue since money wages is sticky, real wages purchasing power will increase in the recession, tax revenue will be lost. Forth, economic downturn when persisted is a fertile ground for fascist, nationalist and populist ideologies. The recession that followed WW1 in Germany and Italy lead up to the birth of fascist and Nazi ideology in both countries.
In Order to save the U.S and Global economy, governments around the world in coordinated efforts injected trillions of dollars as a stimulus package, a designated economic measure to stimulate the floundering economy by incentives and tax rebate. The stimulus package can either be in fiscal stimulus, monetary stimulus or even both. The ultimate goal of an economic measure taken in the case of crises is to prevent a recession. However, central bankers and treasury departments need to be extremely careful because their efforts could lead to hyperinflation. A combination of hyperinflation and recession together can be a prescription for financial and economic disaster on an unprecedented level.
Over 800 billion U.S.D spent on bailing out the failed financial institutions in the U.S only. It was called "Stimulus Package," a rephrasing for handling taxpayers money to the wealthy financial institutions, a free lunch as bounces to their CEOs, a reward for their failure. Can you imagine that this amount of money used to bail out the real homeowners who lost their homes as a result of the 2007 Subprime Mortgage Crisis? An average bailout rate or loan guarantees of 150 thousand U.S.D per family, 800 billion U.S.D will bail out over 5 Million family. A report by CNN money published in January/2009 mentioned a total of 861,664 families lost their homes to foreclosure in the year 2008. Why taxpayers money should pay for reckless CEOs irresponsible investment in inflated poisonous financial securities market?
In order to write this thread, I quote from CNN money website. On that website, a small picture with the title "Got a grand? Get a house." Are you kidding me? Did these real estates moguls ever stop selling people crap?
Foreclosures up a record 81% in 2008 - Jan. 15, 2009
End
Governments and investors fear the recession for several reasons. First, it will lower the price of stocks, assets, and housing. Second, it will increase the unemployment rate. Third, it will affect the government tax revenue since money wages is sticky, real wages purchasing power will increase in the recession, tax revenue will be lost. Forth, economic downturn when persisted is a fertile ground for fascist, nationalist and populist ideologies. The recession that followed WW1 in Germany and Italy lead up to the birth of fascist and Nazi ideology in both countries.
In Order to save the U.S and Global economy, governments around the world in coordinated efforts injected trillions of dollars as a stimulus package, a designated economic measure to stimulate the floundering economy by incentives and tax rebate. The stimulus package can either be in fiscal stimulus, monetary stimulus or even both. The ultimate goal of an economic measure taken in the case of crises is to prevent a recession. However, central bankers and treasury departments need to be extremely careful because their efforts could lead to hyperinflation. A combination of hyperinflation and recession together can be a prescription for financial and economic disaster on an unprecedented level.
Over 800 billion U.S.D spent on bailing out the failed financial institutions in the U.S only. It was called "Stimulus Package," a rephrasing for handling taxpayers money to the wealthy financial institutions, a free lunch as bounces to their CEOs, a reward for their failure. Can you imagine that this amount of money used to bail out the real homeowners who lost their homes as a result of the 2007 Subprime Mortgage Crisis? An average bailout rate or loan guarantees of 150 thousand U.S.D per family, 800 billion U.S.D will bail out over 5 Million family. A report by CNN money published in January/2009 mentioned a total of 861,664 families lost their homes to foreclosure in the year 2008. Why taxpayers money should pay for reckless CEOs irresponsible investment in inflated poisonous financial securities market?
In order to write this thread, I quote from CNN money website. On that website, a small picture with the title "Got a grand? Get a house." Are you kidding me? Did these real estates moguls ever stop selling people crap?
Foreclosures up a record 81% in 2008 - Jan. 15, 2009
End
