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> Maybe I should add, the way I view the 2008 crisis, is that lot of new money were already created by private sector in the asset (housing) bubble And why did
by viklove 5y ago
> Maybe I should add, the way I view the 2008 crisis, is that lot of new money were already created by private sector in the asset (housing) bubble
And why did this happen? Because the federal government repealed Glass-Steagal in the 90s and allowed the banks to do so by trading in risky securities. So, even in this case that you brought up, the money was in effect created by the policy of the legislature.
- js8 5y agoBy this argument, government is responsible for anything that ever happens in society. Which to me doesn't sound right, unless you're talking about some kind of totalitarian regime. The asset bubbles happen in other economies, too, so they cannot be explained away only by removing Glass-Steagal.
- AnimalMuppet 5y agoThe asset bubbles not happening from 193x (whenever it got passed) to 200x (whenever it got repealed) maybe can be explained by Glass-Steagal, though...