| akuma587 said: Economists thought that our economic policies for the last 20 years would result in no problems what so ever and that low taxes and low regulation were ideal for the market. Look where that got us. I don't necessarily think its a good idea to tout economists as the end-all-be-all of economic theory when they all ended up with egg on their face within the last 6 months.
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What got us here is politicians (Democrats in particular, who would have guessed). They pressure Sallie Mae and Freddie Mac into loaning to people who were not qualified for the loans. The reasons the politicians gave for doing this was that many of the people were minorities. SM&FM were not rejecting the loans based on race, but because they did not qualify based on income and credit. Despite that SM&FM approved the loans due to political pressure.
The loans fell through when the applicants couldn't pay them, and that caused the housing market problem. Funny that not very many people hear that version of the events.
When the housing market crisis caused minor economic problems, the media scared everyone by saying it was the next recession. When people got afraid, it changed how they spend money, which is the most likely cause of the recession we are in now.
Now we are in a position like we were around 1930 (after the stock market crash, but before the depression started). The economy is not as great as it used to be, but not bad either. The economy will most likely stabalize on it's own. There is a good chance, however, government will pass some ill-advised legislature that will send us into a depression.
I would go find quotes from people who support my statements. However, when I did that earlier in this thread, people didn't read it properly. I don't really have the will to do it this time.
