The 2007 Subprime Mortgage crisis

The 2007 Subprime Mortgage crisis was the worst in the history of the U.S and the world, the unemployment level starts to rise, and millions lost their homes. In the U.S alone, home foreclosures spiked 81% in 2008, and they are up 225% compared with 2006 according to CNN money website. One of every 54 Americans, 3.1 million, received foreclosure filing in 2008. In fact, a number of 861.664 Americans lost their homes. Home prices in the U.S had been fallen 21%-40% from 2006 price levels. The 2008-2009 recession begins which the Global economy until now didn’t recover.

Governments and investors fear the recession for several reasons. First, it will lower the price of stocks, assets, and housing. Second, it will increase the unemployment rate. Third, it will affect the government tax revenue since money wages is sticky, real wages purchasing power will increase in the recession, tax revenue will be lost. Forth, economic downturn when persisted is a fertile ground for fascist, nationalist and populist ideologies. The recession that followed WW1 in Germany and Italy lead up to the birth of fascist and Nazi ideology in both countries.

In Order to save the U.S and Global economy, governments around the world in coordinated efforts injected trillions of dollars as a stimulus package, a designated economic measure to stimulate the floundering economy by incentives and tax rebate. The stimulus package can either be in fiscal stimulus, monetary stimulus or even both. The ultimate goal of an economic measure taken in the case of crises is to prevent a recession. However, central bankers and treasury departments need to be extremely careful because their efforts could lead to hyperinflation. A combination of hyperinflation and recession together can be a prescription for financial and economic disaster on an unprecedented level.

Over 800 billion U.S.D spent on bailing out the failed financial institutions in the U.S only. It was called "Stimulus Package," a rephrasing for handling taxpayers money to the wealthy financial institutions, a free lunch as bounces to their CEO's, a reward for their failure. Can you imagine that this amount of money used to bail out the real homeowners who lost their homes as a result of the 2007 Subprime Mortgage Crisis? An average bailout rate or loan guarantees of 150 thousand U.S.D per family, 800 billion U.S.D will bail out over 5 Million family. A report by CNN money published in January/2009 mentioned a total of 861,664 families lost their homes to foreclosure in the year 2008. Why taxpayers money should pay for reckless CEO's irresponsible investment in inflated poisonous financial securities market?

In order to write this thread, I quote from CNN money website. On that website, a small picture with the title "Got a grand? Get a house." Are you kidding me? Did these real estates moguls ever stop selling people crap?

https://money.cnn.com/2009/01/15/real_estate/millions_in_foreclosure/

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They should have at least given the money to those who needed it, rather than throwing out billions in all directions where it would do no good.

(On another topic, the Federal Reserve Bank does the same thing, by loaning out money at artificially low interest rates)

And as for "keeping people in their house", why should only those who bought a home they could not afford be rewarded?
What about those who were in the same situation who didn't buy a house?

 

The roots of the problem are in the Subprime Mortage, not something else. Why the government have to pay for everybody debt? Do you think priorities should be proposed? A roof above people head is a priority.

 

Plenty of local zoning laws make it illegal to put a roof over ones head unless it is a fully equipped house with all the trimmings.

 

I meant a house, a roof above someone head.

 

total misunderstanding of course. they were loans that were paid back. Govt bails out citizens with trillions in welfare entitlements every day and not a penny is paid back. Now do you understand?

 

govt prevented another Great Depression. Do you understand?

 

Did they?

Or did they just kick the can down the road by turning it all into national debt?

With subsidized interest rates that effectively handed out billions to the banks.

 

the can is always down the road somewhere so meaningless to talk about.

 

billions?? I didn't see stocks shooting up from the free billions. Do you buy the stock to get your share of the billions?Give example of billions or admit more BS and you never went near Econ 101

 

That's because they were trying to keep prices from going down, obviously. Even you should have known that.

 

Care to try again is useful English????

 

I meant that stock prices were going to head down, so those "free billions" just prevented those investment asset prices from going down.

See, doesn't your comment look stupid in retrospect?

 

Privatization of profits concentrated into the hands of the wealthy elite after strip mining the wealth of the middle and lower classes via the Wall Street Casino Mortgage Ponzi Scam is what has resulted in the current rise in white nationalism.

White nationalism was already growing owing to the prior policies of stealing bonuses and wage increases from hardworking Americans and funneling that into the offshore bank accounts of the wealthy elite.

What we have today is the abject failure of deregulated capitalism.

It is on a trajectory to displace MILLIONS of workers with automated robots doing everything from driving trucks to taking consumer calls in call centers to reading X-rays.

This will result in a great many more angry people out of work who cannot a afford a roof over their heads for themselves and their families. Unscrupulous jingoistic political leaders will exploit this anger to the detriment of our nation and We the People.

 

Seriously? There are no regulations?

 

what comment? can you say why it looks stupid??

 

100% illiterate of course given that we just came through massive housing collapse wherein liberal govt had 132 programs to regulate capitalism to get people into homes the capitalist free market said they could not afford. Do you understand?

 

don't worry dear, farm tractors and electricity already replaced billions of workers and still we have 97% employment.
Should we get a socialist govt in place right away to prepare for the robots??

 

??? why does this cause white nationalism?? Afraid to tell us???

 

This forum has discussed this, nay debated it multiple times.
I as one of the few posters that is truly an expert on this topic has laid out how Democrats and judges ruined a thriving market.

I told them how Bush nationalized Fannie Mae one of the giant guilty parties. I laid out why Fannie Mae is guilty. I laid out it was Clinton deregulating. And the former regulations kept the poor with poor credit from buying homes. Democrats wanted those with poor credit to own homes. Said it makes them good citizens.

I presented videos such as the following to add to the discussion.

 

You don't seem to be good at connecting things together, even what should be obvious, so it's not worth the trouble explaining to you.

Maybe if you actually gave things some more THOUGHT, people would actually be willing to have a debate with you.

 

Um lets see, you said there wasn't free money because stock prices didn't go up.
I explained to you that was illogical because the free money prevented stock prices from going down more than they would have.
Now do you understand????

 

for 3rd time: what comment? can you say why it looks stupid? Why so afraid to debate???

 

no,don't understand can you explain within larger context. What is this free money you are talking about???

 

The bad news is that it represented only a fraction of risky debt both in the U.S. and worldwide.