The 2008 Financial Crisis was a seminal moment in American history. After a century of unchecked American economic dominance, the nation “came within 24 hours of melting down to the pre-industrial age”, as one of the world’s most respected CEOs put it a few weeks later.
The U.S. financial system had frozen due to a cash panic among banks. Short-term loans to small businesses and even cash withdrawals from ATMs were hours from completely halting.
Thanks only to the Federal Reserve’s last-minute injection of trillions into key institutions was the system rescued.
But few know the true story of the root causes of the “Mortgage Meltdown”. Buckle up, because the truth is as interesting as it is painful.
READ THE REST and see the who's who of Democrats. <<<<
h/t to Dave in PA who linked it in this post. By the way, stop over there and see the quick video.
hey, no problem. like may others, my TSP and 401k got raped during this time.
ReplyDeleteand after bozo care got shoved down everyone throat. I really would like to meet some of the assholes behind that
shit show. BTW, I have some very warm feeling for the assholes at blue cross as well.
dave in pa.
Shocking? Mildly. Democrats better called Socialists love to spend OTHER PEOPLES MONEY (and pocket the skim) to get votes. Republicans are no better sad to say. I used to say RINO's, but the rot has made the 2-party system into Two Wings of the same Carrion Bird.
ReplyDeletePity it took almost 2023-2008 = 15 YEARS for this caterwauling rolling disaster to be revealed.
Oh, BTW NOTHING was FIXED with the bailout. Just more MONEY for the pigs at the trough to feed even more.
Our voters forget how we were screwed before next payday, the politicians START Fund raising to keep their jobs mere weeks after they get elected.
China and Russia think in decades.
Putin knows about this; thus, it's been my thought that Putin's just drawing out the Ukraine Proxy War until too much irreplaceable "Smart" and dumb weapons (at current manufacturing rates) are gone, and when like so many Empires a SERIOUS Military Disaster occurs, our well bribed "US Dollar Reserve Currency Allies" flee, and economic collapse occurs.
Ukraine is the greedy Politicians money laundering Tar baby, with a side of US Taxpayer paid for Biolabs (But Aesop faced with links that they exist, says they are but for farming research, well anthrax is a farming disease, eh? Nerve Agents came from bug control, eh? and so on).
Putin's just playing along to keep the canned sunshine away until real world economic collapse shuts off the US BRIBE Money to its "Supporters" in Europe who are IGNORING their peoples protests against World Economic Forum decrees (see Dutch Farmers protests over shutting down farms to build migrant Housing) and the anti-Ukraine war protests in Germany while slow walking obsolete tanks to "support" Ukraine.
As that Joke Meme goes "It's not getting worse, it's getting too Obvious." The flaming dumpster fire of ONGOING Deliberate "Mistakes" like the Dioxin Firebomb of Palestine OH is too big to simply be fully ignored (smothered) by the media. BTW did you notice the two RED States that are getting that contaminated soil from the Train fire? TX and MN? Their Governers are pretty quiet about that, eh?
We the people are screwed.
Protect your family, this dumpster fire might get nuclear as the US Government needs MOAR Distractions to cover their theft and crimes.
"this dumpster fire might get nuclear"
DeleteThe Constitutionally ordained President of The United States said that legal arms are insufficient to stop "the US Government". And American patriots agree. Where's the briar patch, Br'er Rabbit?
There is a u-tube video titled "Burning Down The House: What Caused Our Economic Crisis?" that was posted in '09 or '10 that had much of the same information, so this has been public knowledge since it occurred. I first saw the video thanks to our local TEA Party group.
ReplyDeleteThe Community Reinvestment Act came from President Peanut in 1977. Papa Bush tweaked it a bit in the late 80's as a result of the early 80's banking crisis. (For those too young to remember, there was a group called the "Keating 5" who were hip deep in this banking crisis. One of the unindicted co-conspirators was a younger John McLame.)
Clinton reinvigorated the CRA through several acts passed by Congress, including allowing banks to operate on an interstate basis and the repeal of the Glass-Stegall Act, allowing banks and investment firms to intermix their businesses. Along came Bush, the Lesser, and his "Ownership Society" and you have all the makings of the mortgage implosion.
Our politicians always seem to be found in the rubble of these messes.
POS obummer thumbs down on repeal John McShitstain was involved in this, Arizona don't you know. Yeah I know, Veteran and POW. Well when you also have a foundation like the Clintons and are the deciding vote against repeal you become a P O W orthless shit
Deletea little bit of history for you all. back in 1981-2 it was John Macshitstain and John Kerry-the worthless whore
Deletethat where on the POW panel in congress. THEY are the ones that shut it all down and had EVERYTHING
marked top you can't see it for 75 years . the talk around CGSC at the time was they fucking knew there
where pows left behind. the viets where KNOWN for doing shit like this. they did it to the French with their pows
you pay, you get your people back. we didn't pay what they agreed to and we never got our pows back.
anyone in the know can't stand either of those 2 scumbags
both Johnny boy and Kerry need to see the pit of hell.
was talking with a buddy of mine from that time today. even he got a bit rabid on the subject of "johnny boy"
Deletehe is a retired col. by the way. CGSC is the finishing school for officers to make general.
lots of sharp people there, or was. I have no idea how it is now.
but I do remember seeing POW marking signs pictures that where taken over there in the early 1980's
the POWS that where fucked over and left there by the gov't assholes.
we had proof back then and it was all covered up and locked away for 75 years to protect the assholes
who left those guys there to rot. something about the senate not okaying the funds to rebuild the place after we blew the shit out of it ? terms of the Paris accord or something?
and then they had that state show of johnny dead ass like he was some kind of good guy ?
WTF. dave in pa.
About the same time we were paying around $900/month for shitty health "insurance" from Humana. In those days one could easily obtain annual compensation figures for public companies. It shocked me when I found the top dog at Humana and his 4 lieutenants were pulling down somewhere around $120 million, about the same as what is presented here for Fannie's top dogs in that same time period. Of course it's always a case where the compensation committee decides they have to keep granting large pay increases in order to retain top talent. The corrupt leading the corrupt.
ReplyDeleteAnything that implies the Federal Reserve fixed the problems isn't looking at what happened clearly.
ReplyDeleteThe inflationary recession we're in now is entirely by design of the Federal Reserve. Every economic mess since the "roaring 20s" and Great Depression of the 30s has been caused by the central banks' managed money that gets created out of thin air to increase spending.
We're in a constant cycle of inflation/recession over and over. There's a really important idea from economics called the marginal utility function. It means if you have no dollars and someone gives you one, it makes a much bigger difference than if you have a hundred and someone gives you one. Like Elon Musk says another million dollars of income just doesn't mean anything to him.
That says the ability to "print our way out of this mess" is going away. They've created a few trillion dollars out of thin air in the current mess, how much will need to be printed next time?
any more I am thinking they need to start WW3 just to hide what they did from the world. a nice war would be a great way to hide all of the money that they stole and all of the people who died from the vax shot.
ReplyDeleteit just might rid them of the pesky people who would hold them to account for what they did too.
dave in pa.
I think it was in the late 1990's that insurance companies found out they didn't have to pay the doc's and others that
ReplyDeletedid health care. I still think it started with that bullshit hillarty care . people pay into the company and the company blows off everyone they can for as long as they can. I know a few doc's that just gave up trying to get paid by say,
Blue cross. there is a reason why, you never see small doc offices anymore. only groups ot larger.
medical billing has become a art form, I remember that HUP had over 5 floors of medical billers.
and another whole floor of lawyers to sue people to get THEIR money. that was in 1992-3.
and you wonder why blue cross has a 5 BILLION SURPLUS EVERY YEAR ?
by not paying people, they get more of a bonus ! win-win for them.
and people wonder why I loathe them bastards. dave in pa.
"It is an archetype of the inevitable, catastrophic failures of extra-Constitutional meddling by the federal government"
ReplyDeleteIf a bathetic lie is the best you can muster, at least lie for the morons. The idiots and imbeciles won't even bob their heads, and pretend to follow along.
Were it "un-" -- even, merely, "extra-" -- Constitutional, it would. not. be.
This. This United States. Is The United States Constitution. Instantiated. By design.
A lot of reading which I mostly scanned and these writers unless I missed it are all wrong to a degree.
ReplyDelete"These changes were codified as law when President Bill Clinton signed the Community Reinvestment Act (CRA), which forced banks to write low-income, zero documentation loans".
And who were the two assholes that created this law that would allow people who were not smart enough to know their limitations. Well that phag Barney Frank committee chair of the ways and means committee and Chris Dodd were the authors and cheer leaders of the above act which lead a lot of good people to their financial ruin because they did not know any better. Then they wrote this law.
"The Dodd-Frank Act targeted financial system sectors that were believed to have caused the 2007–2008 financial crisis".
"It's always somebody else's fault" - Bear Claw Chris Lapp. A thousand times when telling my kids that's what's wrong with a large percentage of humans, they don't accept responsibility for their actions, educate yourself dammit.
"The Big Short" has been out since 2015 and explains how greedy bankers caused the global crisis far clearer than most films/documentaries/books, including Faisal Islams "The Default Line" (Good book but hard to read, at times). My fave film of all time, just beating The Shawshank Redemption and Interstellar.
ReplyDeleteCould not do it without the above.
DeleteBear Claw
Well researched and on point. The failure mode was OPM ran out... OUR money was supposed to pick up the slack and didn't (or not enough)... And those in charge dodged many bullets by being 'elsewhere' when it went south.
ReplyDeleteNot really news....anyone who bothers to look already knew. But a well presented timeline and set of facts though.
ReplyDeleteNo one ever got disciplined for the debacle though, and the taxpayers got screwed and were mostly never paid back.
I worked for Freddie at that time. I've had nothing but contempt for Cuomo and fellow-traveling democrats since. Not that the GSEs were entirely blameless. Franklin Raines and other higher-ups at Fannie Mae deliberately altered earnings so that they could collect performance bonuses.
ReplyDeleteDecember 2007 I had a 401K worth $650K. December 2008 after contributing $28k to my 401K and it was worth $420K. I had maximum contributions for the next 10 years and had a 7 figure 401K. Covid hits and the market drops and I told my financial advisor to freeze the account and not sell off and jump into bonds like he did in 2008 as I did not want to realize the loss. The stupid ass didn't listen and I had to file a lawsuit to get my investment reinstated prior to moving my accounts. Twelve years ago a million dollar 401K was the target for retirement at 62. Now that I am 61 the target has moved to one point five million at age 65. Thanks Brandon. Inflation counts for $300K. I need to go to bed so I can go to work tomorrow. FJB
ReplyDeleteWhat is the difference between 'root-cause' and regular cause?
ReplyDeleteIt was the same problem that has gone unabated since. Stupid people making bad decisions to pass idiotic laws that benefit the moneyed interests at the expense of everyone worldwide. All under the good faith claim that they want everyone safe and healthy.
ReplyDelete