So let me ask you guys this. What caused the 2008 subprime mortgage crisis?

The exact same thing interest rates being set to 1% and increased liquidity being pumped into housing through subprime incentives.

Not glass stegal repeal

And who were the ones handing out these mortgages with 1% interest rates to people who could not afford them?

The interest for mortgages werent 1%

That was the fed funds rate

Where banks borrow from

So you're basically saying that the feds enabled this bad business practice of the banks due to their low-interest rates to the banks themselves?

Yes

And governments forcing subprime motgages

But you admit that the banks were the ones who were actually doing the bad business practices that lead to the crash correct?

Yes

Im not pro government business mixing

So then you agree that both the 08 crash and the great depression were caused because the banks got greedy.

They shouldnt have bailed them ouy

On that we can agree.

To an extent yeah

But i blame the root cause

The fed and the government

Sure. But the root cause was lack of government oversight and lack of consumer protections.

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.