Which even changed American History more, 9-11 or the crash of '08?

[cpg35223]

I say 2008. It's basically a catastrophe in slow motion, one that has not even begun to run its course. Not even close. Before it finally unwinds, it will severely affect our national wealth, utterly change our approach to government and economic policy, and have severe repercussions internationally. Further, given how a large proportion of the 2008 crash was caused by government policy of intervention in the housing market, it will put to rest Keynesian economics. Meanwhile, 9/11 has indeed launched into two different wars and have made us more of a surveillance state, but it has not affected the average American in nearly as profound a way.

[cpg35223]

Originally Posted by Antlered Chamataka

It might appear so to the casual observer, but not quite.

The 2008 crisis is a direct product of lack of oversight on wall street, and the lot of restrictions which were in place for mortgage loans being systemically removed by Clinton and then, Bush. It's the housing and it's absolutely the housing.

Well, it wasn't just restrictions being removed. Instead, it was a case of the Federal government becoming much more active in encouraging home ownership, particularly to those who had no business owning homes in the first place. Between Fannie Mae, Freddie Mac, FHA, the increased power of the Community Reinvestment Act, and the Federal Reserve not only lowering rates to artificial lows but also approving all manner of stunt mortgages, the stage was set for a first-class catastrophe.

I consulted for several different mortgage operations in the late 90s and the early 00s. It used to be a point of pride among mortgage lenders that they held onto their own paper. But with the changes in Federal policy around 1995, it became harder and harder for mortgage companies to do so--particularly because underwriting was gutted and lenders were 'encouraged' to adopt more risk. Everyone I worked with got out of the servicing loans by 2003, because their portfolios were made untenable. They shrugged their shoulders and simply started selling their loans off as soon as they were underwritten. It was only a matter of time.

The thing is that nobody really saw it coming despite historical precedents. For example, Australia had tried similar policies in the late 1800s and early 1900s. There was a boom and bust that resulted in a roughly 10% retrenchment of the national GDP.

[zinglicious]

I think what change American History is COMPUTER and TV. In fact, it change the whole world. Think of how many Americans would be glued to Computers and TV? And before that, Americans would be busy making babies instead.

[Chango]

Originally Posted by zinglicious

I think what change American History is COMPUTER and TV. In fact, it change the whole world. Think of how many Americans would be glued to Computers and TV? And before that, Americans would be busy making babies instead.

please! This is rating two events in recent history, not the biggest event or technology.

That's it. I'm starting a new thread!!