Message from @Cortah
Discord ID: 667537966704361500
The root cause was governments in uk and us mainly getting banks to lend to people who couldmt repay the loans without teaser rates
They gave the banks access to very cheap money
and got them to lend to basically anyone who wanted to buy a home
Government guaranteed it which is the issue
And insured all the banks
So the banks had free reign without any risk
There is an innate selfishness in everyone and that can be seen in the banks, but the crash of 2008 was worsened by the guarantees made my government
by*
Ye
Alfie
hit em with that 1921 recession that blew over
Guaranteed accounts of the banks clients meant if they crash and collapse the government will be there to bail it out
Im not saying the banks are innocent Im just saying the answer to these issues isn't more government involvement because thats where these issues get exacerbated
Ye
Again. I agree that is wrong. But what I am saying. The government wasn't as involved. They basically sat a cookie jar in front of a bunch of kids and walked away. They put too much trust in the banks and let them have at it.
The government enabled this behavior but it was ultimately the fault of the banks for doing what they did.
The banks were made to be monopolies by the government, adding more government won't help that. It will only enable private businesses to exploit the power government has over the economy. Government guaranteed anything removes business risk so people will just spend and spend and spend
Spending doesnt hold up an economy, only creates a bubble
remove government, reincentivise saving and investment by removing lack of risk
AS my boi would say
If you put the federal government in charge of the sahara desert, in give years there'd be a sand shortage
The government was extremely involved, like with your analogy bush said wallstreet got drunk but people forget who gave them all the alcohol.
If the government wasnt involved it wouldnt have been this bad thats why they shouldnt be involved, because then they cant leave those cookies there in the first place.
Banks would have just not lent out way to much money and used loads of cheap credit on the stock market because they needed to chase yield because interest rates where so artificially low.
If you let the government get more involved you'll just get the same result, the "Lack of oversight" isn't going to go away if when the government shows to fail at these things you give them even more things they can get wrong.
remove the government from the situation the banks wouldnt have had access to cheap credit and wouldnt have been told to lend to people who arent actually able to pay back loans, with the government also telling people that they are basically insured by the tax payer.
*ahem*
NEEEEERRDDSSS.
LMAO OWNED PHAM
UR THE NERD, NERD
Big lad
Schiff
You linked two random peter schiff videos
When the perfect one is right here for this discussion
@Dragun9500 @Cortah Free tomorrow if u wanna chat about this in VC
@Dragun9500
This is Peter Schiff talking to mortgage bankers in 2006 about how the subprime mortgage crisis is being set up to crash the economy
So what do you guys think would have prevented these and other crashes? Leaving banks unregulated?
**GRENADA**
We all gonna die anyway who giving cares