Just Watched Documentary On Why The Recession Happened

To sum up why the recession happened had to do with the bank and the government, that were tied together.

Government economic advisers and treasurer made sure that certain part of the banks activity didnt havto be regulated because they were in on the process that made them money. These bank and government people got rich and kept the money even after the recession happened, they just resigned and still have millions of dollars to go home to.

These same economic advisers (or had major job in the banks that caused the recession, who is now treasurer) are still in government! Obama's change did NOT happen.

http://www1.zmovie.tv/movies/view/inside-job-2010

theres link to the video if you want to watch it aswell.

Sure, Obama's Cabinet is made up of People From Goldman Sachs, JP Morgan and BofA. The Government gave the big banks special privileges and suspended the accounting rules so that the banks may price their assets at whatever value they want. Just because that home if it were to sell would only get $50k, but the bank is able to show that its valued at 10 times that amount.With the suspension of accounting rules any bank can be made solvent, even if it is billions in the hole.

filtereye said:

To sum up why the recession happened had to do with the bank and the government, that were tied together.

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Agreed. Those ties resulted in a push for financial deregulation which caused the whole mess.

These same economic advisers (or had major job in the banks that caused the recession, who is now treasurer) are still in government! Obama's change did NOT happen.

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Hmmm. I guess that is true to a point. Why Larry Summers still has a job in the whitehouse is beyond me. He shouldn't be allowed to operate a cash register at a 99 cent store. I agree with you about Obama and Geithner. But it wasn't just the presidents and their advisors that were responsible. They were laws passed by congress then signed into law by Bill Clinton and George W Bush.

You could blame Clinton, Phil Gramm, George Bush, Alan Greenspan, etc and all would be correct. But the real problem was the big push for financial deregulation. The regulations that were eliminated between 1998-2003 are what made this whole mess possible. None of what happened would have even been possible before the removal of our financial safe guards.

Those problems still haven't been corrected. Even more insane is the fact that there are still people pushing for financial deregulation as the solution.

Charlie Ventura said:

It all started with the Progressive's agenda to provide a house for whom ever wanted one no matter their ability to afford. The federal government "encouraged" lenders to lend to sub-prime borrowers. The loans were packaged, then sold. It was a house of cards and it collapsed. The Progressive's question was: "Shouldn't everyone have the RIGHT to own a home?" The answer that nobody asked was: "At whose expense?" We experienced what happens when a right is bestowed upon people by the government with no thought to the unintended consequences. A good lesson to learn from all of this is: Government doesn't create rights. Rights are innate and are bestowed upon us by our Creator.

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Actually it all started with the CFMA in 2000 and the repeal of Glass-steagall in 1998. With out those two things, the bad credit default swaps would never have been able to exist and our economic collapse would have been impossible.

But don't let the facts interrupt with your "blame the American people" rant. You're on a roll.

When the Government is in League with the Private Banks it is called Plutocracy.
Even if it is a Democratic style of Plutocracy.

Good to read your thread. Refreshing to see a mind planting the seeds of future understanding!

Charlie Ventura said:

It all started with the Progressive's agenda to provide a house for whom ever wanted one no matter their ability to afford. The federal government "encouraged" lenders to lend to sub-prime borrowers. The loans were packaged, then sold. It was a house of cards and it collapsed. The Progressive's question was: "Shouldn't everyone have the RIGHT to own a home?" The answer that nobody asked was: "At whose expense?" We experienced what happens when a right is bestowed upon people by the government with no thought to the unintended consequences. A good lesson to learn from all of this is: Government doesn't create rights. Rights are innate and are bestowed upon us by our Creator.

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you are mistaken. this whole idea that the progressives pushed the banks to give sub-prime loans is a bunch of bullshit.

sub-prime loans existed LONG LONG before the beginning of financial de-regulation. it was when banks became de-regulated and they realized they could make BILLIONS of dollars in profit that things got out of hand.

what happened was that with de-regulation these risky sub-prime loans were 'securitized' as financial products, and these products were given AAA ratings by rating's agencies. since there was no regulation, there was no liability for these agencies to actually give these securitized sub-prime loans the credit rating they deserved.

so investors all over the world began buying up these AAA securities expecting them to be just as safe as government treasury notes, but with higher returns.

sub-prime lenders also targeted low income folks and deceived them with the terms of the contract. financial de-regulation had allowed lenders to take great freedoms when marketing their services, and they could tell you in the meeting t hat you would only pay 2,000 per month in mortage payments, then when the paperwork showed up, you owed 5,000.

you are quick to blame progressives for this mess, all we want is a decent wage and a good home for EVERY american.

you turn your head at the CRUEL AND UNDENIABLE GREED that screwed people out of their money all over the world and funneled it into the hands of less than 1,000 individuals..... yeah, it's the progressives fault...