Comments on: A Basic Explanation of the Current Economic Crisis http://www.politicselevated.com/2009/10/a-basic-explanation-of-the-current-economic-crisis/ The catalyst for timely political and social discussion. Mon, 08 Mar 2010 22:55:21 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Frank Staheli http://www.politicselevated.com/2009/10/a-basic-explanation-of-the-current-economic-crisis/comment-page-1/#comment-381 Frank Staheli Fri, 23 Oct 2009 16:02:16 +0000 http://www.politicselevated.com/2009/10/a-basic-explanation-of-the-current-economic-crisis/#comment-381 That is an excellent point, but the "chicken before the egg" is that if the federal reserve hadn't opened up the money spigot wide, the banks would have had nothing extra to lend, regardless of how much pressure Barney Frank and Chris Dodd put on them. That is an excellent point, but the “chicken before the egg” is that if the federal reserve hadn’t opened up the money spigot wide, the banks would have had nothing extra to lend, regardless of how much pressure Barney Frank and Chris Dodd put on them.

]]> By: Krista http://www.politicselevated.com/2009/10/a-basic-explanation-of-the-current-economic-crisis/comment-page-1/#comment-380 Krista Fri, 23 Oct 2009 15:57:02 +0000 http://www.politicselevated.com/2009/10/a-basic-explanation-of-the-current-economic-crisis/#comment-380 Part of the inducement to SO MANY banks to issue bad home loans came from governmental pressure, too. Federal-level progressive planners wanted to bias the loan process toward their utopian (I'm giving the low-level participants the benefit of the doubt) landscaping ideas, and they threatened the banks who didn't comply. While a few banks kept their spine intact, (and I can't think of one, but I heard that there *was* at least one); most didn't... and the combination of gutlessness, corporate greed, and governmental power lust was just *incredibly* shameful. That the government *had* enough power to threaten them by that point, is doubly so. Part of the inducement to SO MANY banks to issue bad home loans came from governmental pressure, too. Federal-level progressive planners wanted to bias the loan process toward their utopian (I’m giving the low-level participants the benefit of the doubt) landscaping ideas, and they threatened the banks who didn’t comply.

While a few banks kept their spine intact, (and I can’t think of one, but I heard that there *was* at least one); most didn’t… and the combination of gutlessness, corporate greed, and governmental power lust was just *incredibly* shameful.

That the government *had* enough power to threaten them by that point, is doubly so.

]]>