Discussion in 'Economics & Trade' started by Cigar, Nov 27, 2017.
Who made the people take out all the debt?
There was a policy that made people tap out all the equity in their homes and assume debt they could never repay? Can you point me to the specific policy?
2 guys. OK.
But the only way the economy was moving in the 90s and 2000s was debt driven. That is why the collapse happened. No real growth, just debt driven economy.
Trickle down. Not a who, but a policy. RW I believe.
Trickle down and home ownership expansion.
Show me how that made people assume debt
Trickle down forced more than a decade of debt based economic orgy by the populace?
Its been discussed ad nauseum since the housing bust a decade ago.
No need to rehash. If you can't remember it, there's google.
So you can't defend your assertion?
Thought as much
That there was a housing boom, that acted as the catalyst for the economy and then a housing bust that wrecked the economy?
You really think I couldn't defend that assertion, why would I need to.
It's all there for you to research if you weren't alive for it.
Apparently Karl Marx had to force himself to study economics (for c.10 years) at a London school, to prepare his critique of the economic life of the early industrial revolution, with its egregious abuses of workers rights (wages and conditions).
Now in this post-industrial age (with AI and IT advancing apace) the time has come for economists to design the new global economy which can - for the first time in history - guarantee above poverty level participation in the economy by all citizens of working age. (The resources + technology + knowhow exist, so it can be done).
Then - apart from eliminating poverty and all its associated ills - we won't have leaders engaging in the sorts of hissy fits we have witnessed lately at the G7 meeting.
Eradicating poverty in any nation should be its principle goal. There is no reason whatsoever for a modern, educated economy to accept a Poverty Level of beyond 3% of the total population. And, in America, ours is at 14%!!! That means nearly 40 million men, women and children must live below the Poverty Threshold (which, for a family of four, is $25K income per year).
Which is also, btw, the combined populations of California and Maryland. The population of two Americans states is living TODAY below the poverty-level whilst Donald Dork is proud to yell at all and sundry how fine a job he's doing with an unemployment rate of ONLY 3.9%.
For which he is not in the least responsible because the country, all by itself, started creating jobs during Obama's last two years (2014/15). See Employment-to-Population Ratio history infographic from the BLS here.
And, of course, don't expect Donald Dork to give a damn. He could not recognize abject poverty if it bit him on the arse ...
So, pray tell, what in heaven's name possessed the American people to vote for Donald Dork? Yes, he lost the election, and a manipulation of the Electoral College (which is not based upon the popular-vote outcome) elected the Dork as PotUS.
Who calls that a "democracy"? Then they haven't the slightest notion of the word's meaning. Since the dawn of the democratic election, ONLY THE POPULAR-VOTE DETERMINES THE HEAD OF STATE. (The singular difference between the US and other countries being that in the latter heads-of-state are the leadership of the parliamentary majority since most have no Senate.)
Like most Replicants Reagan was for Trickle-up Economics. He made Net-of Tax Income not only Trickle-up but Rush-up. Which triggered the run-up in the Gini Coefficient (that measures national Income Disparity). See the inordinately high Gini Coefficients of both China & the US here.
Note that the US today has the dubious privilege of being at the same level as China that also has a handful of extremely rich-people and a growing middle-class; but still a great many also below the Poverty Threshold.
THE TWIT TWEETS
Given this above, it is a shame that the hissy-fit was on the part of Donald Dork. Only Japan abstained from accepting the final-report of the G7-meeting, and the Dork subsequently renounced it.
He's pretty good at hissy-fits that he tweets with wild abandon to the world waiting breathlessly for each one ...
So who forced the populace to run up the prices of their homes with credit, while simultaneously spending their equity on luxuries ?
It's called economics, where nobody forces anybody to do anything. But inducements prevail.
If the populace wants to run feverishly at building wealth by buying/selling property in a price inflationary period, then who should stop them? The bubble will burst and a good many people will lose money when it does. That sort of lesson is very rarely lost on humans.
In fact, there is a way to dampen the spiral upwards of inflationary markets. It consists of making the transfer-process laden with regulatory processes. Like third-party expertise of the house to assure there is no structural faults. The most effective is raising interest rates, which makes it more difficult for people to purchase property.
All should be tried. There is no sense toa property-market spiraling out of control simply because buyer-frenzy has overtaken a population ...
So the people caused their own problems.
Still scratching their dicks wondering why everyone can't get rich together running up the price of their homes on debt
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