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Old 09-25-2018, 02:25 AM
 
Location: London
3,885 posts, read 3,326,403 times
Reputation: 1638

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Quote:
Originally Posted by lchoro View Post
You're looking at the wrong market and the wrong tax. It is called a real estate tax in the U.S.
I do actually know what it is. Land Value Tax is different. Applied properly it can greatly reduce income tax.
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Old 09-25-2018, 02:31 AM
 
Location: London
3,885 posts, read 3,326,403 times
Reputation: 1638
Quote:
Originally Posted by Johnhw2 View Post
The foremost cause was what the professor referred to as sub prime loans. Some if these are also called liar loans. No verification of ibcome. So mortgage applicants lied about income to buy a more expensive house. The values we're rigged to keep it all going util the merry go round stopped. The rest of it was a pyriamid scheme built on these iar loans.
Blame the lenders for allowing such loans. Wells Fargo were proved to have been encouraging loans to people they knew would default. But that is only partially the root. It was speculation land, by all, but mainly banks. Land Value Taxation prevents land speculation automatically with no government interference.
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Old 09-25-2018, 02:37 AM
 
Location: London
3,885 posts, read 3,326,403 times
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This was the problem that this landowner was honest about.
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Old 09-25-2018, 10:58 AM
 
162 posts, read 73,854 times
Reputation: 637
Here is a short article by economist Dean Baker, responding (in part) to Ben Bernanke's explanation for the crash: Response to Bernanke On the Bubble Versus Financial Crisis Story of the Great Recession | Beat the Press | CEPR

I think we need to distinguish economic crashes from natural catastrophes. Economic crashes are caused by human behavior. That don't just randomly happen out of thin air. Even if the causes are multifactorial, they can carefully be parsed and identified. Greed lies behind much of this human behavior, but we still need to analyze the individual mechanisms (e.g., changes in banking laws, loaning standards, credit ratings, etc.) that allow the economic train to run off the tracks.
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Old 09-25-2018, 12:23 PM
 
3,545 posts, read 1,995,111 times
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Debt, irrational pricing, irrational decisions are all key aspects of the bubble.

All bells that seem very true in the current economy.
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Old 09-25-2018, 12:52 PM
 
1,319 posts, read 293,260 times
Reputation: 1137
Quote:
Originally Posted by John-UK View Post
No doubt that checks and balances were removed (mainly by Reagan and Thatcher), as Tooze explained. Some have been put back but it will not stop another bust. The bust may not be so bad as 2008, but it will happen. As Martin Wolf states, remove the boom & bust land cycle. That is a great stabilizer.
Wow, seriously?
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Old 09-25-2018, 03:05 PM
 
Location: Ohio
18,018 posts, read 13,247,591 times
Reputation: 13822
Quote:
Originally Posted by John-UK View Post
Prof Tooze does a good job. But the root of the crash was that debt after debt was poured into land.
That wasn't the cause of the crash.

The root cause was the reallocation of Capital to foreign States, mostly in southeast Asia and largely in China.

The export sector took a huge hit, going from an all-time high of 10.8 Million jobs to 8.2 Million jobs.

The export sector was negatively impacted by the $2.10/hour increase in the federal minimum wage.

The employment level peaked at 147,118,000 workers in November 2007 and you wouldn't recover those jobs until October 2014 and not consistently maintain and exceed that level until 2015.
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Old 09-25-2018, 07:04 PM
 
2,738 posts, read 1,213,856 times
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I notice most of the high reps people and 500$ people here are spreading the same propaganda - Nothing is wrong with the system. If it fails, its the people. If its successful, its the system.

I feel its all orchestrated . I am no stock guru, but I noticed 1 year prior to the collapse the Foreign institutional investors were dumping stocks at alarming rate in Asian markets and Domestic investors were buying. Then boom. Later after 3 months, these guys start buying them against at 1/10 of the value.
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Old 09-25-2018, 08:12 PM
 
7,002 posts, read 6,638,516 times
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The reality was that there was an illusion of checks and balances before the crash and after. The feds passed laws to make sure others couldn't interfere with their activity and to legalize activity after they were already underway. One I haven't mentioned is that they passed a law repealing Glass-Steagall years after Citigroup's acquisition of Traveler's was given a waiver by federal regulators. They made sure in this case and others that the bankers couldn't be sued for breaking the law. Another is that regulators clearly didn't look into the conflict of interest in bond ratings agencies being paid by the originators of those securities or into investment banks violating the Chinese firewall in prodding lenders to originate loans to clients who obviously couldn't afford the homes.

Last edited by lchoro; 09-25-2018 at 08:49 PM..
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Old 09-26-2018, 02:02 AM
 
64,630 posts, read 66,158,228 times
Reputation: 43060
Quote:
Originally Posted by shanv3 View Post
I notice most of the high reps people and 500$ people here are spreading the same propaganda - Nothing is wrong with the system. If it fails, its the people. If its successful, its the system.

I feel its all orchestrated . I am no stock guru, but I noticed 1 year prior to the collapse the Foreign institutional investors were dumping stocks at alarming rate in Asian markets and Domestic investors were buying. Then boom. Later after 3 months, these guys start buying them against at 1/10 of the value.
all markets run on fear ,greed and perception -those are all human characteristics
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