Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Your "House of Cards" economy was fully built by January 2007, when the Democrats came into power in Congress.
The vast majority of those bad mortgages were being given out to unqualified homeowners back when Republicans controlled ALL branches of government back in 2003 - 2006.
If you are saying that the "House of Cards" economy and the "bad mortgages" are completely the Republicans fault and the Democrats did not play a part, you are wrong once again.
Please expand. Who is the ''you're'' Krugman is referring to?
From the reference in the link provided .....
"
Cliff Asness AQR Capital
Michael J. Boskin Hoover Institution, Stanford University
Former Chairman, President’s Council of Economic Advisors
Richard X. Bove Rochdale Securities
Charles W. Calomiris Columbia University Graduate School of Business
Jim Chanos Kynikos Associates
John F. Cogan Hoover Institution, Stanford University
Former Associate Director, U.S. Office of Management and Budget
Niall Ferguson Harvard University
Author, The Ascent of Money: A Financial History of the World
Nicole Gelinas Manhattan Institute & e21
Author, After the Fall: Saving Capitalism from Wall Street—and Washington
James Grant Grant’s Interest Rate Observer
Kevin A. Hassett American Enterprise Institute
Former Senior Economist, Board of Governors of the Federal Reserve
Roger Hertog Hertog Foundation
Gregory Hess Claremont McKenna College
Douglas Holtz-Eakin Former Director, Congressional Budget Office
Seth Klarman Baupost Group
William Kristol Editor, The Weekly Standard
David Malpass GrowPac, Encima Global
Former Deputy Assistant Treasury Secretary
Ronald I. McKinnon Stanford University
Joshua Rosner
Graham Fisher & Co., Inc.
Dan Senor Council on Foreign Relations
Co-Author, Start-Up Nation: The Story of Israel’s Economic Miracle
Amity Shlaes Council on Foreign Relations
Author, The Forgotten Man: A New History of the Great Depression
Paul E. Singer Elliott Management Corporation
John B. Taylor Hoover Institution, Stanford University
Former Undersecretary of Treasury for International Affairs
Peter J. Wallison American Enterprise Institute
Former Treasury and White House Counsel
Geoffrey Wood Cass Business School at City University London
"
Cliff Asness AQR Capital
Michael J. Boskin Hoover Institution, Stanford University
Former Chairman, President’s Council of Economic Advisors
Richard X. Bove Rochdale Securities
Charles W. Calomiris Columbia University Graduate School of Business
Jim Chanos Kynikos Associates
John F. Cogan Hoover Institution, Stanford University
Former Associate Director, U.S. Office of Management and Budget
Niall Ferguson Harvard University
Author, The Ascent of Money: A Financial History of the World
Nicole Gelinas Manhattan Institute & e21
Author, After the Fall: Saving Capitalism from Wall Street—and Washington
James Grant Grant’s Interest Rate Observer
Kevin A. Hassett American Enterprise Institute
Former Senior Economist, Board of Governors of the Federal Reserve
Roger Hertog Hertog Foundation
Gregory Hess Claremont McKenna College
Douglas Holtz-Eakin Former Director, Congressional Budget Office
Seth Klarman Baupost Group
William Kristol Editor, The Weekly Standard
David Malpass GrowPac, Encima Global
Former Deputy Assistant Treasury Secretary
Ronald I. McKinnon Stanford University
Joshua Rosner
Graham Fisher & Co., Inc.
Dan Senor Council on Foreign Relations
Co-Author, Start-Up Nation: The Story of Israel’s Economic Miracle
Amity Shlaes Council on Foreign Relations
Author, The Forgotten Man: A New History of the Great Depression
Paul E. Singer Elliott Management Corporation
John B. Taylor Hoover Institution, Stanford University
Former Undersecretary of Treasury for International Affairs
Peter J. Wallison American Enterprise Institute
Former Treasury and White House Counsel
Geoffrey Wood Cass Business School at City University London
"
Thank you.
I found the article a bit confusing, since I don't believe that QE has done much for unemployment. But QE also has only ignited onerous inflation in the minds of the uniformed.
If you are saying that the "House of Cards" economy and the "bad mortgages" are completely the Republicans fault and the Democrats did not play a part, you are wrong once again.
What I am saying is the damage was already completed (i.e. the "House of Cards" was already built) by the time Democrats took control of Congress in January 2007.
Most of those bad subprime ARM mortgages to unqualified homeowners were handed out back between 2003 - 2006.
Many lenders were more liberal in granting these loans from 2004 to 2006 as a result of lower interest rates and high capital liquidity. Lenders sought additional profits through these higher risk loans, and they charged interest rates above prime in order to compensate for the additional risk they assumed. Consequently, once the rate of subprime mortgage foreclosures skyrocketed, many lenders experienced extreme financial difficulties, and even bankruptcy.
These are the mortgages which were doomed to become foreclosures, and helped trigger the Great Recession of 2008.
Dozens of mortgage lenders declare bankruptcy in a matter of weeks. The market is filled with concerns of a major global credit crunch, which could affect all classes of borrowers. Central banks use emergency clauses to inject liquidity into scared financial markets. The real estate markets plummet after years of record highs. Foreclosure rates double year-over-year during the latter half of 2006 and in 2007.
I agree 100%. I have the same queasy feeling I had in late 2007 and I bailed out before the bust, thank goodness. I see a huge plunge coming on, and this recent up-pumpiing of the market is classic just before it goes bust. One "burp" in Washington [quite likely] and down she goes.
In 2007, corp earnings stunk. In 2013, they are rocking.
Thank you.
I found the article a bit confusing, since I don't believe that QE has done much for unemployment. But QE also has only ignited onerous inflation in the minds of the uniformed.
That's true. Unfortunately many people in some authority still believe what these "great minds", who have thus far refused to acknowledge their error, have and continue to tell them. That causes us harm and puts a bind on our Country's ability to positively impact UE more significantly.
Maybe you should pull your face off pages of dailykos and use common sense.
51 million Americans have 401K accounts, and millions of others have other kinds of investments, and all of them benefit. They are the main street, and they are happy about the performance of their investments.
They have those 401k accounts through their employers and, of course, they're happy (as we are) when the market performs. Anyone, though, who doesn't see that this is a fed-generated, artificial high is either smoking the wacky week or knows nothing about how stocks work.
The fact is that there's nowhere else for people to put their money. And let's not forget that these artificially-low interest rates are helping spenders and those racking up bills (again) while hurting savers and seniors (both of whom, BTW, were curiously silent during the last campaign, so I guess I can say that they voted for it)
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
) when the market performs. Anyone, though, who doesn't see that this is a fed-generated, artificial high is either smoking the wacky week or knows nothing about how stocks work.
