The recession did not have to happen

Discussion in 'Economy' started by Truthmatters, Jan 26, 2011.

  1. Truthmatters
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    NYT: Financial crisis was 'avoidable,' inquiry finds - Business - The New York Times - msnbc.com


    WASHINGTON — The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a federal inquiry.

    The commission that investigated the crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors and risky bets on securities backed by the loans.

    “The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done,” the panel wrote in the report’s conclusions, which were read by The New York Times. “If we accept this notion, it will happen again.”
     
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  2. Truthmatters
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    Lack of regulations, poor inforcement and greedy Corps.

    gee Im so surprized
     
  3. Neubarth
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    Neubarth At the Ballpark July 30th

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    If, indeed, we had all that Regulation and Inforcement, would people not be claiming that we are a police state??? It is "We The People" who decide how much government intervention we will tolerate in free enterprise. As it is, "We The People" have restricted our government.

    We also have not demanded severe punishment for those who have been trusted with public responsibility (CEO's CFO's.....) who have proven to be corrupt. I have long said that a bullet to the back of the head is in order, instead, we send them to country clubs where many of them can play nine holes of golf every day.
     
  4. driveby
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    driveby Gold Member

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    Yep, Fannie Mae and Freddie Mac are greedy corporations that Bush tried to warn us about, but Maxine Waters, Chris Dodd and Barney Frank lied to us.

    gee I'm so surprizzzzed......
     
  5. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    The economy goes through natural cycles of up and down because no economy can expand to infinity. I sort of look at it like the economy is "breathing in (expanding) and breathing out (contracting)"

    All economies will have recessions, only this last one was exacerbated by government heavy handedness.
     
  6. Truthmatters
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    did you even bother to read the article?

    things have causes.

    This was caused by a lack or regulations and inforcement
     
  7. California Girl
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    Yea. It was. And guess who was responsible for that lack of regulation and enforcement? That would be both parties. Both. No buck passing, truth. The facts are there for anyone with the intellect and courage to speak the truth.

    Of course, there is also a problem that comes with regulation and enforcement.... If the US regulated and enforced alone (without the rest of the world), the financial industry would have abandoned the US and moved elsewhere. Think that would have stopped the crisis here? Nope. They would still have done business here - they just would have done it from the safety of countries who do not regulate. True story.

    This wasn't a US problem. It was global. The problem with many Americans is that you forget that what happens outside our borders impacts on us, and what happens within our borders impacts the rest of the world.

    The NYT is right.... and wrong.... it's part of an answer, but not all of the answer. And, lots of people saw it coming.... And those people were ignored by our Government (both sides) and governments around the world. Proof, if proof were needed, that politicians are basically incompetent, self serving, corrupt bastards.
     
  8. driveby
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    driveby Gold Member

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    My bad, NYT and msnbc said it, must be true....... :lol:
     
  9. driveby
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    driveby Gold Member

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    Just Republicans though, not Democrats ....
     
  10. Truthmatters
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    Ask the world if it matters what the US does?

    If you remember the world wanted us to regulate right after the crash.
     

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