There Is No One Definitive Answer

Discussion in 'Politics' started by rayboyusmc, Oct 7, 2008.

  1. rayboyusmc
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    rayboyusmc Senior Member

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    As each side throws blame on the other, maybe each should read some of the facts.

    FactCheck.org: Who Caused the Economic Crisis?

    What I haven't been able to find is the percent of loans to low income people vice the percent of recent loans to middle income and speculators who defaulted on their loans and helped fuelthe housing crash and the resultant bank failures.
     
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  2. Chris
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    Chris Gold Member

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    The cause of the collapse is two fold.

    One is that there was no risk to mortgage companies to loan money to poor credit risks because they were able to sell the loans on the day after closing.

    The other cause is that the derivative financial instruments allowed banks to lend more money than they had on hand, so it was just like the low margin problem that caused the 1929 crash.
     
  3. dilloduck
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    dilloduck Diamond Member

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    Whoever trusted someone else with their money is to blame. This one is simple.
     
  4. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    Apparently there was "insurance" sold on the MBS's that was not backed with the funds required for insurance so they called them 'Credit Default Swaps'. 60 Minutes did a story on them that is pretty telling. Apparently the bad values here run into the tens of trillions - 700 Billion is not even a decent band-aid.

    http://audio.cbsnews.com/2008/10/05/audio4502780.mp3

    Simple, stupid, unregulated greed.

    -Joe
     
  5. rayboyusmc
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    rayboyusmc Senior Member

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    The band aid will spring another bloody leak in a short time.

    More of fixing the sympton and not the root cause.
     
  6. xsited1
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    xsited1 Agent P

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    The voting record shows that true conservatives voted AGAINST the bailout, while moderates and liberals voted FOR it. People should remember this while in the voting booth.

    This bill needs to be passed now:

    H.R. 2755: Federal Reserve Board Abolition Act
     
  7. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    :clap2:

    Agreed.
     
  8. Larkinn
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    Larkinn Senior Member

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    So you have all yours stuffed in your freezer?
     
  9. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    Thanks for the post, bro'!

    E-mails have been sent to DC... I hope they realize their jobs depend on this stuff!

    -Joe
     
  10. xsited1
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    xsited1 Agent P

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    Most of the Democratic voters won't be listening. They're too brainwashed to understand what is happening. :sad:
     

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