Too much loose credit
- It would be easy to blame either of our two main political philosophies being liberal or conservative. That is too common of an excuse when both sides have made mistakes. I believe America for going on forty years now has simply spent too much and saved too little. Credit became too easy to acquire. Couple easy money with greed and you have a bubble waiting to burst. It just so happened in the Great Recession it was the US housing market that blew up. When a housing market the size of the US blows up the whole world gets a cold. The recovery has been so weak in my opinion because the US manufacturing base has grown much too small as a percentage of GDP. In past recoveries the US manufacturing economy was large enough to float all the boats in the sea. Service sector jobs are fine,but they just dont pay the wages that a manufacturing job does.
- —Guest Kevin
reasons lost in history
- The things we see happening in our
government to day are not unexpected by those who make the rules. Nothing happens
in Washington by accident. Everything is thought out with a purpose. It is well known
that President Nixon actually created our
financial doom when he severed the gold
standard from our paper money back in 1979. One could well say the disgraced president had his revenge. After that, there
were no restraints on what could be done with fiat money. The crooked schemes that
followed resembled giant spiders webs and
studied in depth, wads of entangled yarn. t There is never a spider named just the entangled victims. Global finances today are incredible mazes of distortion no one can decipher, not even the creators. At the global level the only victims are the desperately poor ( Africa , Haiti),who pay the price for global Ponzi schemes with their
lives. Hillary Clinton said it," never waste a
good disaster. With every world disaster,
someone on high gets richer. It's real
- —Guest carolyn
Save our Country
- Must have a law that prevents non workers from voting. Only hope we have is to allow the people making the money to decide how to spend it. Why should a dependent have any say so? (Note from Kimberly: What about stay-at-home moms? People going to school? The retired, including retired veterans? Should they have their right to vote taken away?)
- —Guest Dirk
Poor Ratings Model
- S&P and Moody's did not do their job (due diligence) in analyzing the individual mortgages in the bond pools. Gave a rating to the average FICO score for the entire pool which allowed the greedy (but very smart) exploiters on Wall Street to game the system. A decent analysis and correct rating would have solved the problem? Triple-A? Really!
- —Guest EC Taylor
The value of money for morgtages
- We the people of the United States of America borrow money at interest. This money and interest rate is not controlled by the laws of supply and demand.
- —Guest daniel
- The Democrats took control of Congress in the 2006 election and the country and their irresponsible actions started the recession that is still a problem today. They blame countless other sources, starting with Bush and the banking system.
Greed on Steroids
- The collapse of 2008 was the result of a tsunami of greed created by a significant portion of those, world-wide, with the means to participate and the fear of losing out on one last get-rich-quick scheme.
- —Guest Gary
- The immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005–2006. Already-rising default rates on "subprime" and adjustable-rate mortgages (ARM) began to increase quickly thereafter.
- —Guest Chioma
Deregulate Wall Street
- Check the bill that congress pass in 1999-2001 that cut the restrants on Wall Street. Which also came when the
oil industry closed 26 refineries the west coast alone
- —Guest Terry Steward
Wrong and stupid
- I disagree with everything it screws over the US people like Chris Clere and Andrew Hudges lose there jobs to Mexicans and we all end up like the people on breaking bad its time to stand together and vote agiasnt all the big time policticans like Osama bin laden and Barack Obama time to stand up like Anne Frank, Peyton Manning, and Wyatt Browning.
- —Guest Tristan Werbe
- I think the banks (commercial and investment) orchestrated the meltdown. They sold as many CDOs as they could to unsophisticated buyers (ie Icelanders) as quickly as they could. The banks also bought off the rating agencies as well as the originators. Their excesses caused Lehman to blow up, Merrill to be sold and AIG to be bailed out to the tune of almost $200B. Becuase of CDOs these guys lost more money in 2008 than their whole companies lost in their whole history... We need to bring back Glass Stegall and never allow this to happen again...
- —Guest Don Hall
- Lying-stealing bankers,and the federal reserve along with are phony congress men---proveme wrong
- —Guest L.Marlow
The reason for financial crisis
- Because of the foolish act by the people of America with out any common sense towards the economy and in general for the day today life living and still acting very reckless in oct. 2012.
- —Guest Michael
Response to Philip
- Hi Philip,
In my opinion, the global financial crisis was caused by repeal of Glass-Steagall . Second, unregulated use of derivatives, especially credit default swaps that led to a false sense of security.
- —Guest Kimberly
- What is your feed back for the comments 'Causes of financial crisis'. Kim can you comment on this.Thank you.
- —Guest Philip