| NintendoPie said: Wait, even though I was younger I specifically remember since 2002 (when I actually toke notice to things) almost everyone was really well off in America and the houses were selling ridiculously fast at ridiculous amounts, I remember it staying that way 'till around 2008. |
Housing stimulus. People were given really good rates on borrowing.
Banks thought they could give out cheap rates that people wouldn't be able to afford five years later when the rate goes back up, and then take the house. Banks foreclosing on houses basically started the recession we are having now, although stagnation did start a bit earlier than that.
Of course, the only reason there was stagnation at all was because of the dotcom boom skyrocketing earnings and businesses. It's similar to the wii boosting gaming market by 30% in it's first few years causing people to say gaming is dying, except the national spending affects a lot more in a shorter span of time.
