most of the time, it's the governments who give the banks that power

by giving them bailouts and lower interest rates

bailouts for banks is a huge mistake

just a product of corruption

The "Great Recession" was a result of deregulation in the financial industry which resulted in banks engaging in hedge-fund trading with derivatives.

I think one of the issues is that democracy gets subverted because industry has has money to influence the law to give them a leg up often to the detriment of the people

no, it was a direct result of the federal reserve lowering interest rates to stimulate the housing market

this subsequently caused a bubble to form

the housing bubble popped, causing the recession

it didnt help that the government is always bailing out the banks

let them fail and start over for a more stable recovery

I am not sure if I agree totally with austrian perspective that low interests rates lead to poor use of capital because government manipulation but I think there is a reasonable argument that fucked up priced signals effects how soundly people use capital

it's up to people how they decide to use their capital, not the government

unless of course, the government raises taxes

but if hayek is right shouldn't nations who engaged in austerity be doing better than nations who used keynes ideas to increase capital available to stimulate the economies?

The inquiry commission concluded that the crisis was a direct result of failures in financial regulation and oversight, as well as failures of corporate governance and risk management at key financial institutions.

What triggered it all was a bursting of the housing bubble.

ah yes the inquiry commission, a government appointed commission to invesitage the government-caused crisis

how reliable

just more excuses to bring more government control

the more powerful a government is, the more powerful the billionaire class becomes

it's the billionaires that pull the strings at the end of the day

I think that happens when you have the state heavily influenced by industry

but they can only do it if the government has enough power to allow it

that is the struggle we must fight

the state serves industry and leaves the people holding the bag

we bailed out the companies who wrecked the economy but didn't have them forgive any debts or made sure people still had homes

exactly

government should not be in the marketplace

no more regulation and power

no more being run by the billionaires

The Fed definitely made things worse by keeping interest rates high for an extended period of time in the hopes of combating inflation, but to suggest that the crisis was a direct result of an action taken by the Fed is purely unsubstantiated.

I think the state could have negotiated to make sure the banks were still operational but not leave the common folks in the cold still in debt and lacking homes

the fed had much more to do with it

people were predicting the crisis years before it happened

I guess I just think people should have housing no matter there level of income

*their

they were basing it off the fed's interest rates

they wanted to stimulate the housing market

so they tried stimulating the housing market

they ended up stimulating the housing market too much