How did we get into this mess?

[Lancer]

I'm not looking at this thread anymore.

Its all politics Zkrib, they're all dirty rotten scoundrels in Washington both sides but there's so many in this forum that I can troll its hard to resist. Sorry, not meant to disturb you, but you know.

[Kidlicious]

Are you guys going to go on forever trying to show that it wasn't your own parties fault? There's another thread for that, if that's the case. The lead up to this crisis started in the 80's. There is plenty of blame to go around.

Now if we want to fix this we need to get back to how things were in the 70's. This current proposal certainly doesn't do that.

[SlowwHand]

Lancer nailed it in OP. Clinton treied to 1 up the "chicken in every pot" statement. Typical of an administration that practiced sexual instant gratification, and loosed that outlook on the housing market. "Buy more house than you need", being the rallying cry.
As a result, Loans were granted in 2 part harmony, the smaller of the 2 home loans on an ARM. Both not clearly visible, creating an illusion. Didn't work.
Tax on many home purchases weren't included in the payments, leaving home owners to save towards that on their own. Again, creating an illusion that the borrower could afford the purchase.
We'll go back to the 20% down and mortgage insurance.

[Lancer]

Actually so much industry has been shut down during and after the '70s that I don't know if going back is reasonable. All those folks that worked in Pensylvania Steel and the southern textile industry or Detroit auto manufacturing and basicly all electronics have moved on that I'm not sure going back to diversified industry can be done short term. We have gotten so used to getting by on financial smoke and mirrors that the transition will be difficult indeed.

First thing we should do is tax all imports that are manufactured for pennies per hour worked right up to US union wages cost so that industry can again have a chance here. Then the government should limit lawyers rights to sue, and put in true universal health care with no payoff to the insurance industry. That will send those folks looking for real jobs in the new manufacturing industries.

Believe me, the 70s were screwed up too. Lots of businesses died screaming for gov help against unfair competition but got no hearing.

[Kidlicious]

Originally posted by Lancer
Believe me, the 70s were screwed up too. Lots of businesses died screaming for gov help against unfair competition but got no hearing.

What's so screwed up about that?

[Lancer]

We don't make anything here anymore. That's screwed up.

[Imran Siddiqui]

Of course we do. Don't be silly.

[Kidlicious]

Originally posted by Lancer
We don't make anything here anymore. That's screwed up.

Ok, then let's get back to where we were in the 60's. Ok, that's even farther, but that's what we need to do.

[Lancer]

Originally posted by Imran Siddiqui
Of course we do. Don't be silly.

Oh? Like what? Airliners and a very few cars, and weapons.

Other than that we sell raw materials.

[Lancer]

Originally posted by Kidicious


Ok, then let's get back to where we were in the 60's. Ok, that's even farther, but that's what we need to do.

That's about right. That's before the main export of the US became the dollar.

[Arrian]

First thing we should do is tax all imports that are manufactured for pennies per hour worked right up to US union wages cost so that industry can again have a chance here

Smoot-Hawley Tarriff Act FTW!

-Arrian

[DinoDoc]

Originally posted by Vesayen
Wrong. The basis of the crisis is when regulating bodies under the control of the Republicans, changed regulations, i.e. eliminated them,

[chequita guevara]

Re: How did we get into this mess?

Originally posted by Lancer
Pelosi before the bailout vote pinning it all on "Failed Bush economic policies" when in fact the dems fought his efforts to stop the bleeding. This speach killed the passage of the bailout which some think would have helped fix the mess.

You know you're a moron when you believe such patently false lies, by which I mean that the GOP didn't vote for the bill because of Pelosi. They didn't vote for the bill because their constituents are 9 to 1 against it, and the GOP is probably going to be clobbered in this election. They didn't vote for it because they are in that races and voting for it would be enough to make them lose.

[DinoDoc]

Che: How do you suppose giving a partisan speech before what was being sold as a bipartisan vote helped the effort to get votes?

[Kidlicious]

Originally posted by Arrian


Smoot-Hawley Tarriff Act FTW!

-Arrian

You don't believe that caused the great depression do you? Exports were only 5% of GDP at the time and there were other more obvious causes.