Oct 08, 2008 08:10PM GMT
Question
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Politics - United States
What is the major cause of what has happened to our economy?
hint...not the government
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raves +2 posted Oct 09, 2008 02:20PM GMT
Answered it is
Greed across the board (business & political) and the outrageous increase in home value in the housing market caused by the credit made available to people who could not afford the $250,000 houses they were buying! You know, I can remember 4 years ago people commenting on the housing bubble and what would happen if it burst. Well, we now know, don't we. Yes, people should be able to buy homes, but if you can't afford a $250,000 home, then you shouldn't buy one! People need to learn to stay within their means! -
raves posted Oct 08, 2008 10:32PM GMT
Answered it is
Speculations ,when people bought houses with no intentions of keepin'em or even live in ,waiting for the price upsurge and sell for a profit,it worked for 3/4 years and then the real estate market went south and many owe more than the house is worth not having a ' minimum legal' down payment on(negative equity).Irresponsability is the other reason when people purchased houses above their means,made possible only because of fraudulent lending practices,and this would be the third reason. -
raves posted Oct 08, 2008 10:04PM GMT
Answered it is
APATHY....for more than a generation, we've been more interested in the Tabloid headlines of our wouldbe statesmen than their ability to lead and BE statesmen. Because we've managed to pay more attention to trivia...because we've allowed the press to drag the private lives of the candidate...and their families...through the meat grinder, many would be candidates pass on the important jobs.
Answered it is
The unbridled creation of money through loans (cheap credit) at a cost below the price of inflation, devaluing the dollar, and creating asset bubbles against which people borrowed MORE cheap money in a dizzying spiral up and up until reality could support it no more and it went down, down, down... it's hard to believe international bankers (The Federal Reserve) did not know exactly what they were doing.