Thread: What caused this recession?

What caused the recession we are currently in? Your thoughts...

Government.

Originally Posted by Defensor

Government.

Can you be more specific...

Originally Posted by Conservative15

Can you be more specific...

The entire socialist system has failed. If you want specific answers, you'll need specific questions.

Originally Posted by Defensor

The entire socialist system has failed. If you want specific answers, you'll need specific questions.

Who in government would you say is the most guilty of causing these problems?

Hopefulyy this link will work.

These are the major areas where the housing price pyramid scheme has tumbled....

Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water' - WSJ.com

Once started, the rest has fallen like a house of cards.

Originally Posted by Conservative15

Who in government would you say is the most guilty of causing these problems?

The legislative branch, the executive branch, the Federal Reserve system.

And they are actively working to turn this recession into a depression as we speak.

Don't we have like a bazillion threads on this subject?

Originally Posted by Conservative15

Who in government would you say is the most guilty of causing these problems?

Who is responsible?, Borrowers, lenders and a government that facilitated, even instigated lending to unqualified people.

Originally Posted by Conservative15

Can you be more specific...

Defensor is right, government insisted upon establishing GSE's in Fannie Mae and Freddie Mac and with that government power behind them, Fannie and Freddie took over half of the entire financial market. So, since those two GSE's backed up half of the country's loans, they COULD NOT fail or the entire financial system would collaspe. Or so Paulson says.

Personally, I'd prefer an economic depression to a socialist state established through these "rescue" plans. Economic freedom is diminishing in this country and fast.

Now, the government's brilliant solution is to clean up the government mess with MORE GOVERNMENT INTERVENTION. How sensible is that?

What you see now is Waxman, Dodd, and Frank all pretending like they had nothing to do with the collaspe and bringing CEO's up to Capitol Hill to act as scapegoats.

There's also several other things that led to this, such as the mark to market accounting rule, Congressmen acting like nothing was wrong with the GSE's, Bill Clinton social engineering, where EVERYONE has to have a nice home, and yes, government bureaucracy.

Throw in irresponsible lenders and irresponsible borrowers and you have a crisis.

That good enough for you?