@cicerone imposter,
I copied what I did on to Word and tried to correct the mistakes. Here is the reprint:
The whole problem can be traced to the Iraq war and free trade. The Iraq costs about $250 billion a year and the world is not buying American products because of the war. Europe, Middle East, South America and Africa are turned off by W's foreign policy. On top of that all the multi-nationals are out to destroy the unions so the good paying jobs are outsourced. The cost of the war and the trade deficit drains money from the treasury. W's tax cuts further increased the outflow of funds. Normally, in order to pay for government services it issues bonds or loans. To attract money the government has to have high interest. High interest would affect the economy and cause a recession. So W didn't want recession while he was president so he decided to stoke the housing market with low interest rates. Low interest rates help stimulate all industries. Housing industry has a great effect on the economy as it employs many people.
Global Warming and W's term limit helped seed the financial crisis. As he was no longer seeking office in 2008 he let the Federal Reserve to raise interest rates to pay for the debt and deficit. Quite a few mortgages defaulted but the press downplayed it. W was alarmed and interest rates were again lowered. However, Global Warming which W was denying, brought on worse weather and the housing along storm regions were damaged creating havoc with mortgages and insurance.
The deregulation brought on by Republican Phil Gramm allowed companies to print false certificates on shaky mortgages as financial instruments. The deregulation allowed the merger of banks, insurance, brokerage and investment. Banks no longer behave as banks but as shills for financial products such as stocks, bonds, and highly leveraged financial products as derivatives, etc. Banks did not check for credit risk and took those mortgage-based certificates at face value. So the banks overloaded themselves with these certificates which were debts as mortgages are really loans. The banks did not have enough money to cover the debt as the bank managers looked at the certificates as assets and not as liabilities.
The merger of the mass media also contributed to the mess as they hid this crisis. Republicans control the mass media.
The big boys, including former Treasury Secretary Snow, not aware of the credit crush started on a leveraged buy-outs of smaller companies. Large steel, aluminmum, coal and telecommunication companies were being raided. They were being financed by the same banks that were loaded with the mortgage-based certificates. The big swirl of buyouts revealed the credit crunch as banks realized finally that the certificates could not be cashed. Former Treasury Secretary Snow was involved with the leveraged buy-out of Bell Canada for $30 billion. It was dropped.
Mean while, Paulson wrote a Shock Doctrine set of proposals knowing of the looming crisis and the Congressional Elections and the short amount of time for Congress to look into the matter, waited until the last moment to go to Congress to solve the matter giving himself immense power. This is the work of psychopaths and jerks. He is trying to jerk Congress using the crisis to give him more powers.
Congress should fire back that the Bush was irresponsible to not approached Congress earlier to stave off the crisis but waited at the last moment to take advantage of the situation to create a crisis mode toadvance his agenda of more Executive power.
