R
rdean
Guest
I keep hearing the Recession began because of Freddie/Fannie. Seems it had nothing to do with Wall Street.
When I explain that 70% of the mortgage market moved to Wall Street and Wall Street sold those mortgages as "securities" and those securities were "insured" and when the securities tanked and the insurance companies had to pay off their debt which were called "derivatives", that was when the economy took a nose dive. The right wingers keep telling me how stupid I am and that's not what happened at all. That it was all Freddie/Fannie and the Democrats.
So I'm asking those economically savvy Republicans, "What exactly caused the Recession". Please explain in a "step by step" manner. I really want to know.
I asked one right winger what a "derivative" is and this was their answer:
"a derivative is a financial instrument"
So please, from the right wing perspective, explain the financial meltdown. I really want to know. Make sure to explain why Wall Street had nothing to do with the financial meltdown and how derivatives are nothing.
When I explain that 70% of the mortgage market moved to Wall Street and Wall Street sold those mortgages as "securities" and those securities were "insured" and when the securities tanked and the insurance companies had to pay off their debt which were called "derivatives", that was when the economy took a nose dive. The right wingers keep telling me how stupid I am and that's not what happened at all. That it was all Freddie/Fannie and the Democrats.
So I'm asking those economically savvy Republicans, "What exactly caused the Recession". Please explain in a "step by step" manner. I really want to know.
I asked one right winger what a "derivative" is and this was their answer:
"a derivative is a financial instrument"
So please, from the right wing perspective, explain the financial meltdown. I really want to know. Make sure to explain why Wall Street had nothing to do with the financial meltdown and how derivatives are nothing.