The chart that shows when the US economy began freefall

[code1211]

Its was in january of 2006.

Guess what that conclusively proves.

The right OWNS this downturn.

Of course the nitwit would draw such a nonsensical conclusion.

In reality, the government sponsored a housing bubble over a twenty year period which burst in 2006.

On a different board, I do recall one of the posters pointing to the sub primes and the lending practices and noting that this was a huge problem that would explode soon.

I don't recall what year that was, but 2006 or 7 sounds about right.

At that time the % of home owners in the country was above 70% for the first time ever and it lloked by that measure like things were humming right along.

As a ding dong who is not so real close to the home mortgage market, I didn't know. The ding dongs who regulate this stuff should have been as concerned as the guy who was posting on a message board.

We need smarter ding dongs.

 

[antagon]

i dont think there is such a thing as a wealth based economy. so far, it appears i'm right. a wealth based economy relies on the idea of taking cash out of circulation and snatching up trappings which dont effect the creation of any additional prosperity. it sounds like a formula for an economy coming to a crashing hault, and the 'invested' (spent) funds vanish with the depreciation.

That's been the case so far but automated factories and portfolios are becoming the major source of revenue for everyone as Eurasia deals with its declining labor force.

is this the pattern for the wealth-based economy? diffusion of naturally concentrated wealth from production? the idea that somehow people aimed to have home ownership (basically debt) facilitate this is baffling to me. if this wealth based transition is so necessary, i think hyperkeynesianism is a more practical angle than that. luckily i dont think there's any need to rush an artificial redisposition on how the economy works at all.

 

[Wry Catcher]

The obvious conclusion is, President Bush knew and we know when he knew - how is it possible to not conclude he was a failure?
We must also conclude, Pres. Bush was not too concerned, he had the stage to put his concerns about the housing problem on the front page of every newspapaer, the cover of every newsmagazine and as a lead on every news - real or faux - program.
A second conclusion, Rep. Frank and Sen. Dodd must be more capable of leadership than any Republican member of Congress.
Finally, we must conclude the right - lead on this mb by the echo chamber - is rather stupid. Defending the indefensible with lies and half-truths is so foolish.

 

[editec]

We ALL own this economy, folks.

To the extent that some people, some Congresses, some policies, some regulations, some LACK of regulations, made it possible?

Well there's PLENTY of blame to go around.

Remember, that thounsands and thousands of people, bankers, brokers, salesmen, lawyers, mitgage companies ALL made billions of dollars during the ride UP the real estate market.

Pretending or imagining that one can pin the entire blame for it on a party, or a person is simply childish partisan blather.

 

[william the wie]

i dont think there is such a thing as a wealth based economy. so far, it appears i'm right. a wealth based economy relies on the idea of taking cash out of circulation and snatching up trappings which dont effect the creation of any additional prosperity. it sounds like a formula for an economy coming to a crashing hault, and the 'invested' (spent) funds vanish with the depreciation.

That's been the case so far but automated factories and portfolios are becoming the major source of revenue for everyone as Eurasia deals with its declining labor force.

is this the pattern for the wealth-based economy? diffusion of naturally concentrated wealth from production? the idea that somehow people aimed to have home ownership (basically debt) facilitate this is baffling to me. if this wealth based transition is so necessary, i think hyperkeynesianism is a more practical angle than that. luckily i dont think there's any need to rush an artificial redisposition on how the economy works at all.

On that we have agreement. Employee stock purchase plans and options need to go much further down the foodchain and financial leverage needs to be discouraged.

 

[william the wie]

Its was in january of 2006.

Guess what that conclusively proves.

The right OWNS this downturn.

Of course the nitwit would draw such a nonsensical conclusion.

In reality, the government sponsored a housing bubble over a twenty year period which burst in 2006.

On a different board, I do recall one of the posters pointing to the sub primes and the lending practices and noting that this was a huge problem that would explode soon.

I don't recall what year that was, but 2006 or 7 sounds about right.

At that time the % of home owners in the country was above 70% for the first time ever and it lloked by that measure like things were humming right along.

As a ding dong who is not so real close to the home mortgage market, I didn't know. The ding dongs who regulate this stuff should have been as concerned as the guy who was posting on a message board.

We need smarter ding dongs.

Actually the FBI tried to launch an investigation into mortgage fraud in 2003 but nothing happened. That would be great book to write for someone who had the time and money to do so. I wonder if it turned into a behind the scenes turf war between Treasury, HUD and Justice or if congress quashed that line of investigation.

 

[RadiomanATL]

It actually started a few months earlier.

This chart shows housing starts. Meaning new houses being built. In advance of housing starts, you have the new houses that were already built which were not selling. That drop-off started around August/September of '05.

 

[Si modo]

Oh goodie!
Another Red vs. Blue pointless argument to throw rocks across the fence at each other.

Yay!!

Which indicator should we cherry pick next to summarize the economy?

 

[RadiomanATL]

What TM is too stupid to realize is that the seeds for this downturn were planted 20+ years ago. And each administration and congress watered them just a little more...