Where is the US economy headed?

By the way, there is another problem bubble sitting out there for the government to deal with and bail out in the future, because it has been mismanaged and allowed to grow to monumental proportions, that being the student loan program.

http://www.bizjournals.com/southflorida/stories/2010/08/16/daily7.html?surround=lfn

1 Reply

@okie,

Student loans have always been a problem and many who landed good jobs like doctors and lawyers never paid back.

1 Reply

@okie,

Here is the video with it all on record as I explained to you, cyclops. Maxine Waters on record as praising Franklin Raines, that raided Fannie for at least 90 million while cooking the books there, and to this day nothing has been done. And there won't be while Obama is in there.

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@Cycloptichorn,

Cycloptichorn wrote:

No, it wouldn't have. In fact, it wouldn't have stopped the crisis at all. The whole Credit Default Swap system was a house of cards, and all that would have done is push it over faster. After 2004 there was little that ANYONE could have done.

I have provided a great deal of evidence that this is true, in terms of both links to historical accounts and patient explanations to you. You have ignored everything I've written, because you aren't smart enough to understand it, and it doesn't blame the Democrats, so you aren't interested.

Cycloptichorn

You have asserted this several times before, and you have offereded references suggesting that the collapse of the Credit Default Swaps after the housing bubble burst was indeed a factor in the financial meltdown. However you most certainly have not established that the credit default swaps alone caused the financial catastrophe. The underlying cause of it all was the bubble in housing prices and the collapse of lending standards, both fed by the sale and securitization of mortgages by Fannie and Freddy which continued feeding capital into an inflating market - all with an implied government guarantee. Had there been no bubble and no collapse of lending standards, the credit default swaps would have not alone created a problem. Even without the credit default swaps, the collapse of the housing bubble alone would have caused a major recession - though Lehman brothers and AIG might not have failed..

2 Replies

@okie,

Quote:

People that want stuff they can't pay for, that is true greed.

Food, gasoline, clothes. . .no one needs that stuff.

1 Reply

@okie,

Quote:

I have in fact also expressed the opinion that national socialism is to the right of communism or pure Marxism, however we are not hogtied to a tiny portion of the overview of left vs right spectrum when we analyze the spectrum today.

You opinion and $4 should buy you a latte,

0 Replies

@okie,

Quote:

That principle has in fact happened over and over, and anyone that is familiar with free market economics knows this happens continuously.

There is no reference for that or this.

0 Replies

@Cycloptichorn,

Quote:

'Conservative politicians' are the ones who ran our economy into the ground, Okie. You seem to have very little historical perspective, and think that things just collapsed all at once for no reason at all.

Both statements are true.

0 Replies

@plainoldme,

plainoldme wrote:

Quote:
People that want stuff they can't pay for, that is true greed.

Food, gasoline, clothes. . .no one needs that stuff.

People normally pay for food, gasoline, and clothes at the time of purchase, so if they don't have the money, usually they don't buy it. I was talking more about bigger houses and newer fancier cars that they don't need and can't pay for. Also it is true that buying expensive clothes and eating out all the time in restaurants on a credit card is also a luxury not required to live, so if they run up their credit cards to do that, it is unnecessary.

1 Reply

@Cycloptichorn,

Quote:

It was a lack of regulation which lead to our financial crisis, Okie - and you know it. When Conservatives decry regulations, this is what they are inviting: unchecked economic activity which greatly enriches a tiny minority at a cost to all of us.

We have been repeating this over and over again.

1 Reply

@plainoldme,

Bush and Republicans wanted more and better regulation of Fannie and Freddie, and they were blocked by Democrats. Have you even read the posts about this yet, pom?
http://able2know.org/topic/47327-560#post-4318698

3 Replies

@spendius,

New houses? I bought a house because that was less expensive than renting because ownership is less expensive.

1 Reply

@plainoldme,

Great, so did I, but most of us buy houses that we can afford.

0 Replies

@talk72000,

I work with a young man of 23 from a rather marginally blue collar family. He registered for community college classes after high school and received a student loan. He went to one class and never bothered to show up again and never formally withdrew, leaving the government to cover his tuition. He has no intention of paying those loans. Students who barely start school and never officially withdraw are common.

0 Replies

@okie,

You have no idea what you are talking about. Because real wages have remained flat for 80% of the population for more than 30 years, people have resorted to using credit cards to buy groceries, gasoline and clothes, creating enormous personal debt. The top quintile is able to buy those large houses dubbed McMansions, not the bottom three quintiles.

The sheer size of the Baby Boom pushed the price of domicile up but the problem is beyond the size of the population. The high divorce rate exacerbated the problem. You ought to read Paper Money by 'Adam Smith.'

0 Replies

@okie,

Quote:

Bush and Republicans wanted more and better regulation of Fannie and Freddie, and they were blocked by Democrats. Have you even read the posts about this yet, pom?

That is just another of your lies.

2 Replies

@plainoldme,

plainoldme wrote:

Quote:
Bush and Republicans wanted more and better regulation of Fannie and Freddie, and they were blocked by Democrats. Have you even read the posts about this yet, pom?

That is just another of your lies.

Actually this one is true. Bush could and should have tried harder than he did.

1 Reply

@georgeob1,

Quote:

Actually this one is true. Bush could and should have tried harder than he did.

Bush certainly could have tried harder but it was the Republicans in congress that didn't bring it to a vote prior to 2006. So, the claim that the Republican's wanted more regulation but were blocked by dems isn't quite true.

0 Replies

@okie,

okie can't remember the simplest of American history that goes back only one president and congress; GW Bush had a republican controlled congress, and he's trying to blame the democrats for the GOP failure.

When is this guy going to stop posting his ignorant blurbs that recreates history?

0 Replies

@plainoldme,

I will do research on the matter but not today and probably not tomorrow.

0 Replies

Where is the US economy headed?

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