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Very Hot Topic (More than 25 Replies) What caused the housing bubble and bust in 2008? (Read 665 times)
EWS
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Re: What caused the housing bubble and bust in 2008?
Reply #10 - May 20th, 2019 at 4:27pm
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kaz wrote on May 20th, 2019 at 4:21pm:
Yes, but don't forget to give W the assist by calling it out as a bad policy, then expanding it



Ah yes I forgot. When I think of good ol' Dub-Yuh all I can think about is the Patriot act
  
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Jeff
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Re: What caused the housing bubble and bust in 2008?
Reply #11 - May 21st, 2019 at 9:02am
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kaz wrote on May 20th, 2019 at 4:21pm:
Yes, but don't forget to give W the assist by calling it out as a bad policy, then expanding it
It's almost as if the government is engineering a collapse of the economy!

Here's another example:

https://www.nextbigfuture.com/2019/05/why-many-generic-drugs-went-up-10-60-times...

From the article:

"Craig Gottwals, healthcare guru, described how the Medical Loss Ratio (MLR) price control mandate in Obamacare got rid of the incentive for insurance companies to keep control of drug costs."

Of course it could be just the hubris of the elites and the collapse of the economy will be purely accidental... After the collapse, it will be claimed that "capitalism" fell because it doesn't work... Brought down by it's own greed and shortsighted quest to maximize profits...
  
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Jeff
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Re: What caused the housing bubble and bust in 2008?
Reply #12 - May 21st, 2019 at 5:50pm
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EWS wrote on May 20th, 2019 at 4:27pm:
Ah yes I forgot. When I think of good ol' Dub-Yuh all I can think about is the Patriot act
You didn't/don't know anything about Dubyas role know in that government debacle?

Or is it that you do but just don't want to acknowledge it?

That's my guess... I don't think you're stupid...
  
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Jeff
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Re: What caused the housing bubble and bust in 2008?
Reply #13 - May 21st, 2019 at 5:58pm
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SkyChief wrote on May 19th, 2019 at 4:25pm:
• prices on mortgage-backed securities plunged, resulting in large losses for lenders
That's after the bubble burst Chief...
  
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Re: What caused the housing bubble and bust in 2008?
Reply #14 - May 21st, 2019 at 6:01pm
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It seems to be settled. Too much government power over the economy, and bad policies created and enacted by "progressives" screwed up the economy again, even after all the elite experts told us (once again) that they had things well in hand...

Edit: We are now at a point where elite experts are telling us they have no idea at all what to do. Shocked

  
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SkyChief
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Re: What caused the housing bubble and bust in 2008?
Reply #15 - May 21st, 2019 at 6:25pm
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Jeff wrote on May 21st, 2019 at 5:58pm:
SkyChief wrote on May 19th, 2019 at 4:25pm:
• prices on mortgage-backed securities plunged, resulting in large losses for lenders



That's after the bubble burst Chief...

Touché.

Here's something that nobody has mentioned so far:

Adjustable Rate Mortgages.

Fed started raising interest rates. Folks with ARMs couldn't make these higher payments.

Demand fell, and so did housing prices. When these people couldn't sell their homes, they defaulted on the loans.

Then the lender was stuck holding worthless securities as "assets".
  
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Jeff
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Re: What caused the housing bubble and bust in 2008?
Reply #16 - May 21st, 2019 at 7:08pm
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SkyChief wrote on May 21st, 2019 at 6:25pm:
That's after the bubble burst Chief...

Touché.

Here's something that nobody has mentioned so far:

Adjustable Rate Mortgages.

Fed started raising interest rates. Folks with ARMs couldn't make these higher payments.

Demand fell, and so did housing prices. When these people couldn't sell their homes, they defaulted on the loans.

Then the lender was stuck holding worthless securities as "assets". [/quote]You're trying to blame someone besides the Fed?
  
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Jeff
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Re: What caused the housing bubble and bust in 2008?
Reply #17 - May 21st, 2019 at 7:09pm
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Jeff wrote on May 21st, 2019 at 7:08pm:
Touché.

Here's something that nobody has mentioned so far:

Adjustable Rate Mortgages.

Fed started raising interest rates. Folks with ARMs couldn't make these higher payments.

Demand fell, and so did housing prices. When these people couldn't sell their homes, they defaulted on the loans.

Then the lender was stuck holding worthless securities as "assets".
You're trying to blame someone besides the Fed or Congress?

  
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Re: What caused the housing bubble and bust in 2008?
Reply #18 - May 21st, 2019 at 7:33pm
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Jeff wrote on May 21st, 2019 at 7:09pm:
You're trying to blame someone besides the Fed or Congress?


Yes.  Banks.
  
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Re: What caused the housing bubble and bust in 2008?
Reply #19 - May 21st, 2019 at 7:38pm
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SkyChief wrote on May 21st, 2019 at 7:33pm:
Yes.  Banks.
That's what I thought. Thanks for admitting it.
  
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