shel wrote:You're confusing "economists" with politicians or something, reddust.
Maybe so, but economists and politicians share the same bed, this is one of my favorite subjects and I was just reading this…
The problem with economic news today is that most of it comes from economists. And economists are trained to deal with statistics, not with people. by Economist and author Hazel Henderson
From my notes:
Depression-Era rules destroyed by Alan Greenspan, (an economists), back then our Federal Reserve Chairman (The Federal Reserve and IRS are private organizations and are not part of our Government), and President Clinton (a politician) back during his presidency, he signed the Financial Services Modernization Act, which allows merging of banks, securities firms and insurers. It repeals parts of the Glass-Steagall Act. Which totally caused the "to big to fail" crisis of our banking industry and also the derivatives scam bundling housing loans and selling them to buyers over and over again even if they were absolutely worthless.
The key to the housing boom was the ability of Wall Street investment banks to buy up mortgages, chop them up into pieces based on their supposed quality, and turn them into giant bonds and other financial paper that was bought up by investors.
... This was part of a much bigger practice in the financial system of trading “derivatives” — financial paper “derived” from underlying financial assets. In housing, however, the value of those underlying assets — the houses themselves — is dropping due to higher default rates on mortgages and falling house prices.
... big banks have had to write off about $110 billion in bad debt. Big banks big firms like Citigroup, Merrill Lynch and Bear Stearns have had to turn to the Saudi royal family and state-controlled sovereign wealth funds from Dubai and China for bailouts...From Bubble to Bustby Lee Sister
I see these bubbles as fields of grain and the bust is harvest time for the money addicts. We are just stupid livestock to them.