Class Warfare Blog

September 20, 2018

Our Great Response to the Great Recession

Note The title I wanted and could not create is “Our Great Awful Response to the Great Recession” (mostly due to all of the recent “pat on the back” looks back at our response to the financial collapse).

On the Naked Capitalism website there is a great interview of Michael Hudson in which he simply and clearly points out that our economy is currently still in the tank because of decisions made to bail out political donors and screw average Americans, mostly by President Obama (a corporate Democrat), which were unnecessary and counter to what has worked in the past.

Check it out:

Michael Hudson: 10 Years Since Lehman Brothers Bankruptcy – Did the Economy Really Recover?

 

5 Comments »

  1. This will be studied and debated for a long time.
    One problem was that most of this bad loans were fraudulent loans. There was no borrower living in the houses with any income. No payments were ever made and the houses sat there deserted or inhabited by squatters.
    Loans were made on lots that did not exist and on whole subdivisions of vacant lots. Home loans made on homes that did not exist.
    Most of the fraud was from the bottom up. Grassroots fraud and and corruption from the top down.

    It was a real mess.

    Like

    Comment by Old Guy — September 20, 2018 @ 12:16 pm | Reply

    • I think the fraud went from top to bottom and I do not include the home buyers so much (they are guilty of gullibility), many of which were first-time buyers so they had no experience in the process.

      The originators of the loans were crooked, as were their bosses, as were the Wall Street idiots who bundled them into toxic securities and almost none of those criminals lost their jobs or went to jail.

      On Thu, Sep 20, 2018 at 12:16 PM Class Warfare Blog wrote:

      >

      Like

      Comment by Steve Ruis — September 21, 2018 @ 10:01 am | Reply

  2. Of course you noticed that the very rich got ever more rich during and after that recession. The middle class, whatever/whoever they are, got a few bits of the pie and the working class and poor folks got basically zip. Oh, wait, we did get the ‘privilege’ of trying to pay for it all.
    I read another article at the web site Lobe Log by John Feffer and he basically says there will be another crash and it will be worse than the last one of 2008.
    I’ll read the one by Mr. Hudson. I have read some of his work before. I still don’t really trust most economists though. Economics, the “dismal science” as I recall from my pre-USMC days at community college. I seriously doubt that economics is any sort of real science. Just me being grumpy………and so it goes………

    Liked by 1 person

    Comment by Walter Kronkat — September 20, 2018 @ 4:40 pm | Reply

    • Oh, the economists were also incriminated as they gave opinions on finance when they had no real knowledge and the knowledge they had was quite flawed.

      On Thu, Sep 20, 2018 at 4:40 PM Class Warfare Blog wrote:

      >

      Like

      Comment by Steve Ruis — September 21, 2018 @ 10:02 am | Reply

  3. A great read, video, interview, and fuller perspective of the key economic mechanisms and components, but better still… the human factors. Mostly negative human factors if I’m to be generous and kind. :/

    One of my favorite quotes from Nobel Prize Winner in Economics, Joseph Stiglitz, about the modern Land of the Few, Home of the Lavish, the U.S. :

    “The top 1 percent have the best houses, the best educations, the best doctors, and the best lifestyles, but there is one thing that money doesn’t seem to have bought: an understanding that their fate is bound up with how the other 99 percent live. Throughout history, this has been something that the top 1 percent eventually do learn. Often, however, they learn it too late.”

    This is the consequence of Wild Wild West economics, also known as “deregulation” or rather the lack of protections for the average, and unfettered capitalism without game referees, umpires, or rules of conduct league wide. Who tha FUCK wants to watch or play in a league like that where the “winners” are always the same season after season after season?

    Great share Steve. Thank you.

    Liked by 1 person

    Comment by Professor Taboo — September 20, 2018 @ 6:41 pm | Reply


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