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"Study economics. It isn't that difficult of a subject." But, then saying such a condescending thing, you back that font of economic prowess with: "We're in a
by muhfuhkuh 16y ago
"Study economics. It isn't that difficult of a subject."
But, then saying such a condescending thing, you back that font of economic prowess with:
"We're in a depression in the US caused by a distortion of the market from government. Under clinton it was decreed that loaning money only to people who could repay it was racist"
That's not true at all. First off, way to blame the world financial crisis on poor people (because _that_ isn't playing class warfare at all /s). Secondly, If it were just a bunch of poor people defaulting on mortgages, we wouldn't have needed two "quantitative easings" via buying 2.1 Trillion in MBS, three bailouts, and a stimulus. It wasn't Clinton, or Fannie/Freddie, or even Barney Frank that forced banks to invest 30:1 in toxic securities, and if we had regulations put in place, 30:1 bets on the so-called "poor people's" mortgages wouldn't have been allowed.
Place the same blame on this bust that we had on the one during the 20s and then during the S&L bailout in the 80s: Pure Wall Street avarice. They can use the poor people, the government, "insurance" companies, tax shelters, the Fed, asset leverage, and finally the People's tax largesse to stoke their fire. In pure capitalism, everything burns.
- deleted 16y ago[deleted]
- Klinky 16y agoIf you're talking about the Community Reinvestment Act then perhaps you should go into more detail about why you feel it was responsible: http://www.businessweek.com/investing/insights/blog/archives/2008/09/community_reinvestment_act_had_nothing_to_do_with_subprime_crisis.html http://www.businessweek.com/investing/insights/blog/archives... Supposedly 50% of loans were done by institutions who were not regulated under the CRA. There were plenty of institutions making bad loans w/o any pressure what so ever. Wall Street pretty much deserves about one hundred percent of the blame. No one investigated or cared where mortgage back securities were coming from or how viable they were. Just because the temptation is there to take advantage of something, doesn't mean you should. For a sector that keeps shouting about how regulation is ruining the economy, they are very poor at self-regulating themselves, as shown by the housing bubble. They needed to learn restraint & showed they actually had none.