Wait... what??? LMAO tax cuts didnt have any impact, war costs had no impact... and the deregulation is on Bill Clintons shoulders.
HERE is what caused the economic collapse:
The financial crisis happened because banks were able to create too much money, too quickly, and used it to push up house prices and speculate on financial markets.
1. Banks created too much money…
Every time a bank makes a loan, new money is created. In the run up to the financial crisis, banks created huge sums of new money by making loans. In just 7 years, they doubled the amount of money and debt in the economy.
2. …and used this money to push up house prices and speculate on financial markets
Very little of the trillion pounds that banks created between 2000-2007 went to businesses outside of the financial sector:
Around 31% went to residential property, which pushed up house prices faster than wages.
A further 20% went into commercial real estate (office buildings and other business property)
Around 32% went to the financial sector, and the same financial markets that eventually imploded during the financial crisis.
But just 8% of all the money that banks created in this time went to businesses outside the financial sector.
A further 8% went into credit cards and personal loans.
3. Eventually the debts became unpayable
Lending large sums of money into the property market pushes up the price of houses along with the level of personal debt. Interest has to be paid on all the loans that banks make, and with the debt rising quicker than incomes, eventually some people become unable to keep up with repayments. At this point, they stop repaying their loans, and banks find themselves in danger of going bankrupt.
4. This caused a financial crisis
As the former chairman of the UK’s Financial Services Authority, Lord (Adair) Turner stated in February 2013: “The financial crisis of 2007 to 2008 occurred because we failed to constrain the
financial system’s creation of private credit and money.”
This process caused the financial crisis. Straight after the crisis, banks limited their new lending to businesses and households. The slowdown in lending caused prices in these markets to drop, and this means those that have borrowed too much to speculate on rising prices had to sell their assets in order to repay their loans. House prices dropped and the bubble burst. As a result, banks panicked and cut lending even further. A downward spiral thus begins and the economy tips into recession.
5. After the crisis, banks refuse to lend, and the economy shrinks
Banks lend when they’re confident that they will be repaid. So when the economy is doing badly, banks prefer to limit their lending. However, although they reduce the amount of new loans they make, the public still have to keep up repayments on the debts they already have.
The problem is that when money is used to repay loans, that money is ‘destroyed’ and disappears from the economy.
So when people repay loans faster than banks are making new loans, it’s like draining the oil from the engine of a car: the economy slows down and prices decrease. As a result the economy risks slipping into a ‘debt-deflation’ spiral, where wages and prices fall but people’s debts do not change in value, leading to debts becoming relatively more expensive in ‘real’ terms. Even those businesses and people that weren’t involved in creating the bubble suffer, causing a recession.
ALSO, if you care to educate yourself, Wikipedia has a whole section dedicated to it.
https://en.wikipedia.org/wiki/Causes_of_the_Great_Recession
***The U.S. Financial Crisis Inquiry Commission reported its findings in January 2011. It concluded that "the crisis was avoidable and was caused by: Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk; An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis; Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw; and systemic breaches in accountability and ethics at all levels."[5][6]***
Wait.... What??? Here is Bush and his committee TRYING to get regulations and oversight... But guess who is calling them "Stupid" and yelling at them telling them nothing is wrong? https://www.youtube.com/watch?v=KcCs1yGO6aA
Can you show from a legitimate news source that the main cause was Bush's war and tax cuts at all? (Deregulation was on Democrats)
You should read thru some of this
www.factchech.org/2008/10/who-caused-the-economic-crisis/
it shows the bush admin role as well as others. Trying to absolve bush of any blame is silly
Hey stupid,
Nobody gives a fuck about your laughable insults, redundant boring-ass quips and fictitious "knockouts" anymore.
RX Nation is doing cartwheels that the one-man broken clown show known as "Vitterd Nation" will soon be getting the boot, courtesy of my buddy festeringZit.
azzkick(&^
But, ISIS happened during Obama.
And YES the Economic collapse was caused by Democrats, with the deregulation of banks and the Community Reinvestment Act
You go around in circles and are quite hypocritical.
Bush is at fault for the collapse and 9/11 because it happened when he was President.
Obama isnt at fault for anything, because of Bush and the previous things put into place.
Bill Clinton was before the Collapse and 9/11, so its not his fault.
Bush is at fault for ISIS cause he started what became ISIS.
Come on man, you are getting to be at Dafinch standards when it comes to being partisan.
Here are facts:
Bush started a bad war with Iraq, which led to a government and military collapse in the region, and put an agreement in to pull our troops out. Obama then did nothing to change the agreement or leave any sort of force in the region while ISIS was springing up, instead touted his "Victory for bringing troops home" (then change his mind, and later said he didnt, and it wasnt on him) He had ample time to amend or change the agreement and did nothing.
ISIS BLAME Bush 50% Obama 50%
Economic Collapse - The Glass-Stengall act deregulated banks, and the Community reinvestment act made it possible for people who couldnt afford a home, to buy one. With the deregulations and Act in place, people went crazy, buying homes they couldnt afford, Fannie Mae and Freddie Mac giving bad mortgages, then selling them to banks. Republican leaders and Bush Admin tried to wheeel it all in before the collapse and gave many warning of a bubble. But democrats on all the committees refused to listen (Reason being was because they were making millions from those firms by being on those boards)
BUSH 0% House/Senate Democrats, Clinton 100%
9/11 Bush had intel and didnt move quickly enough or put pieces into play to stop it , but it was an unconventional attack and did not have 100% certainty who, when or how the attack would occur. Some blame also on Bill (very little) for not stepping up his resources to thwart anything or get more info on Osama Bin Laden.
Bush 80% Clinton 20%
I dont let facts (or partisan beliefs get in my way), you should try it once.
Im literally starting to fell sorry for you.
So Obama had nothing to do with ISIS? Really? He had several years to do something, yet never did a thing.
YET you say Bush caused the economic collapse, even tho the dominoes were already falling over, and HE TRIED to get it under control before the collapse.
And the Glass-Stengall act along with the Community Reivestment act caused the financial crisis. Was the biggest and main contributing factors, to say otherwise is idiotic
I don't even need to take the moral highground as you already place yourself beneath everyone here whenever you mention Franco C. Meanwhile Dafinch and I coexist peacefully now while you keep turning old friends into new foes (Another Vit firestarting attempt is doused by the Landau Sprinkler System).
