Why the US economy tanked in 2008
Road Warrior
Joined: Dec 2006
Posts: 1,548
Likes: 163
From: Mt. Airy, MD
I am by far no expert, but I think the mess we are in has been caused by a number of factors for a number of years now. Kinda like the riverbank getting undercut by erosion, and then the house finally crashing into the river. While it's definately a contributing factor, the financial mess is just the latest nail in the economy's coffin (and maybe the straw that broke the camels back).
Elite HDF Member
Joined: Apr 2008
Posts: 4,718
Likes: 11
From: Back in the Good Ole USA. South Carolina to be exact.
1. Killing the domestic oil industry
2. Killing the Nuclear Power industry
3. Setting up Iran to be the world center of terrorism
OPEC controls our economy by controling the supply/price of oil. They in turn use the revenues to fund jihadist groups against Isreal and the rest of the infidel world. Hamas and Hezballah would not exist w/out support from Iranian oil revenues.
Road Warrior
Joined: Aug 2007
Posts: 1,374
Likes: 0
From: Southern Arizona
OK guys, who created the environment that allowed the banks to loan to unqualified borrowers, & why did they do that? It goes back to the policies of the gov. in the 70's when we had high oil prices, slumping economy. To stimulate spending and and pick up the economy, the gov eased regulations allowing more people to borrow. Also they started taxing your savings. The result encouraged people to spend money they had not earned and also made it easier for lenders to lend (can yoiu say Ponzi scheme?), also discouraging saving. They effectively have built a house of cards over the last 30+ years, people spending $ they don't have, eventually, the credit MUST run out and the people stop spending, jobs that count on that spending go away, those that are now jobless stop spending and so on. The gov is now spending $ they don't have in an attempt to stimulate the economy again, do you really think that is a long term solution? I think not, it will only delay the inevitable. Unfortunately, the problem will only resolve after much pain no matter what the gov does. Sorry guys, I am not articulate enough to explain this as clearly as I would like and this is just a snippet from a problem that is very complex and has taken many years of bad policy after bad policy to get us here.
Road Warrior
Joined: Jul 2007
Posts: 1,460
Likes: 1
From: pasco county FL
The run up in fuel prices sucker out BILLIONS from the economy that would have been spent across many other products & services . Blame the speculators for that. Along with the Community reinvestment act as carter got in the 70's with billy's tweaking was another along with billy's signing off on removing the barriers between banking & securities......which REALLY fueled the unpayable loans to a new stratisphere.The comination of those 3 major factors as well as many small pressure points is why we are where we are .Sad thing is debt as a country & individually is why we are here now and all this stimulus crap is just more damn debt ..... that will actually stretch out the recovery instead of it probably being over in 1/3 of the time , just let bad business' fail!
Thread Starter
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Outstanding HDF Member
Joined: Jun 2007
Posts: 2,542
Likes: 2
From: Cocoa Beach, Florida
Thanks Lures - I get you now. All of these are contributing factors all right, especially the "adjustable rate" scam for sure since I still lean toward the housing "boom" that went bust as the main problem source. Who actually caused that?
Well - a lot of interested parties did. LOTS of interested parties and I think most of them knew exactly what they were doing too. I think they just didn't expect the bust to be so sudden.
Well - a lot of interested parties did. LOTS of interested parties and I think most of them knew exactly what they were doing too. I think they just didn't expect the bust to be so sudden.
Road Captain
Joined: Sep 2008
Posts: 546
Likes: 0
From: Arizona
the crisis happened because of GREED, on the part of the banks AND the citizens of the good 'ol US of A. plain and simple. when we stop trying to live above our means and start showing a little 1950's style integrity, things might get better. i think its going to be a long road though. we have gotten fat and complacent and now its time to pay the price.
Road Warrior
Joined: Aug 2007
Posts: 1,374
Likes: 0
From: Southern Arizona
The run up in fuel prices sucker out BILLIONS from the economy that would have been spent across many other products & services . Blame the speculators for that. Along with the Community reinvestment act as carter got in the 70's with billy's tweaking was another along with billy's signing off on removing the barriers between banking & securities......which REALLY fueled the unpayable loans to a new stratisphere.The comination of those 3 major factors as well as many small pressure points is why we are where we are .Sad thing is debt as a country & individually is why we are here now and all this stimulus crap is just more damn debt ..... that will actually stretch out the recovery instead of it probably being over in 1/3 of the time , just let bad business' fail!
Road Warrior
Joined: Aug 2007
Posts: 1,374
Likes: 0
From: Southern Arizona
Now you see, I'm no economist, but I understand that if I spend more than I make, eventually I will have to pay the piper. So it is with the economy, just on a much larger scale. As Un3asyrider said "plain and simple. when we stop trying to live above our means and start showing a little 1950's style integrity, things might get better". I gotta agree.
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