You clearly dont understand the causes of the recession. One of the causes can be traced back to Jimmy Carter. The recession isnt the result of any single cause. Its a culmination of many causes. Some of the causes can be laid at the feet at Democrats, some at the feet of Republicans and some of the causes are the result of actions of the public.<quoted text>
No, moron, YOU are the cause of the worldwide recession, since conservatives are the worlds village idiots. They put Bush (and the New World Order banking criminals) in power, kept him in power in spite of all his stupidity and treason, and even reelected him.
I wonder why you didnt mention how superior their countries were before you scum attacked them?
Denmark better than the U.S.
Which Is Better: Government or Private Spending?
At one extreme is Denmark, where well over half of all spending is done by government, and yet its people report themselves the happiest in the world.
The most often overlooked cause was the gutting of the Glass-Steagall Act. The passage of the GLB act under President Clinton allows the banks to speculate with the mortgage funds. The Glass-Steagall Act of 1933 prohibited commercial banks from being involved in investment banking. This is the fuel which allowed the crash to expand as it did.
Carter passed the Community Reinvestment Act which required banks to make loans in low income areas. That forced banks to engage in the business of offering high risk loans. That caused the subprime market to expand. Clinton further expanded the Community Reinvestment Act. That accelerated the growth of sub-prime loans from $35 billion to more than $1 trillion.
Now bring the GLB Act signed by Clinton in. By gutting Glass-Steagall with the legislation it allowed the speculation. GLB was a Republican bill. Then Congress (under Democratic control) allowed Fannie May and Freddie Mack to repackage the loans and resell them on the open market, Here comes the investment speculation.
Sub-prime loans because very profitable as a result. So profitable no-doc and low-doc loans became common. The banks didnt care, they were planning to sell the loans anyway. Potential home owners too advantage of programs which allowed them to pay interest only during an introductory period. That allowed them to buy much larger homes they couldnt otherwise afford. We saw that with the high default rate once the introductory period was over. That introductory period also fueled the growth of sub-prime investments. Combined pressure was put on housing supply driving the price of home to artificially high sales prices.
Then it all came to an end. Housing values decreased as much as 50% leaving many home owners under water and millions of homes unsellable unless someone was willing to incur substantial losses. Because of the greatly reduced value communities were left with a dwindling tax base.
There are many causes beyond this point including the devaluation of the dollar. No one single cause could have triggered the event.
Whos at fault? Democrats, Republicans, people trying to make a quick profit flipping real estate and people attempting to live beyond their means. You choose to blame an imaginary new world order.