So Wall Street Caused our Economy to Crash

[Captain_Klink]

It is now confirmed, that last year's horrible spike in oil prices, was directly caused by Wall Street firms that made billions of dollars, on the back of Main Street, by speculating wildly and driving the price of oil to levels that tanked our economy, causing Main Street to fail. And after that, of course, Main Street bailed out Wall Street, so they could carry on their shenanigans. These Wall Street hooligans need to be indicted, and jailed.
http://www.dailykos.com/story/2009/7/29/...-08-Oil-$-Spike

 

[river_rat]

It was a deregulated, short sighted, corporate larceny, speculation fest...just like the 1920s. Guess what happened next?

We've gone through this de-reg speculation followed by economic calamity a number of times before the 30s, too.
Had to see it coming...had to. I did and I'm a dope.

 

[ToyotaNSaturn]

LOL! OMG! That's FUNNY! This should be in the HUMOR forum!

Referencing the DailyKos for news of substance is like Mike Tyson about how to be sensitive to a woman's needs.

 

[Pablo]

Originally Posted By: Captain_Klink
These Wall Street hooligans need to be indicted, and jailed.


Which ones are you talking about?

No trial? Harsh!

And all this time I thought it was those nasty people driving SUV's. Who knew?!?!

 

[msparks]

Really, our economy was collapsed in a few short months of higher prices of oil? I didn't know it was that fragile.

 

[labman]

Perhaps if you don't trust the Daily Kos, how about Forbes magazine? They don't entirely blame the oil speculators, but have beat up on them. They also point out the failure of the government to enforce the regulations on short selling, pressuring the banks to make unsound home loans, weak dollar policies, etc.

 

[ZZman]

As I have said before, GREED drove all the things listed above. Stop being so greedy people. Stop taking risks and gambles that you and the economy can not afford.

 

[Pete591]

Originally Posted By: river_rat
It was a deregulated, short sighted, corporate larceny, speculation fest...just like the 1920s. Guess what happened next?

We've gone through this de-reg speculation followed by economic calamity a number of times before the 30s, too.
Had to see it coming...had to. I did and I'm a dope.


It happened on "W's" guard...who else to point the finger towards?

 

[msparks]

Originally Posted By: ZZman
As I have said before, GREED drove all the things listed above. Stop being so greedy people. Stop taking risks and gambles that you and the economy can not afford.


At what point does it become Greed? Anyone who makes over $100,000 per year is greedy aren't they?


I'm thinking in a free market without govt regulation this wouldn't have happened.

Greedy folks get what is coming to them (unless the govt steps in)

 

[pbm]

I agree that speculation (rather than supply and demand) drove oil prices way up and hurt the economy. I do believe that the meltdown of our economy had far more to do with the out-of-control housing bubble which was caused by sub-prime lending. This lending was mandated by Congress so that minority home ownership increased. I believe that Congress has to take the majority of the blame. Throw them all out. That would be CHANGE we could believe in.

 

[MONKEYMAN]

Hmm, how does the free market keep greed in check?

I know people that make over $100,000 and I would not consider them greedy. They are very responsible and compensated for there hard work and competence.

People living beyond their means did not help. I saw this coming years in advance and got my financial house in order. I did not loose anything. This country has not been on a solid foundation for a while. I am not sure greed caused that, maybe ignorance.

 

[brianl703]

Originally Posted By: Pete591


It happened on "W's" guard...who else to point the finger towards?


Congress, maybe?

 

[msparks]

Originally Posted By: MONKEYMAN
Hmm, how does the free market keep greed in check?

I know people that make over $100,000 and I would not consider them greedy. They are very responsible and compensated for there hard work and competence.

People living beyond their means did not help. I saw this coming years in advance and got my financial house in order. I did not loose anything. This country has not been on a solid foundation for a while. I am not sure greed caused that, maybe ignorance.



Better explanation than I can give:
Quote:
Firms are profit seekers, but they will seek it where the institutional incentives signal profit is available. In a free market, firms profit by satisfying their customers, investing wisely, and making prudent loans. Regulations, policies, and political rhetoric can change those incentives.
http://bit.ly/2YGSFl


I was trying to make a point with the $100,000 per year. Where do you draw the line at Greed vs profit seeking (is Warren Buffet greedy or Bill Gates?)Anyone who doesn't want to do better and be compensated for it, is a socialist or communist.

I too have been getting my house in order, living below my means and saving my money. But once all this bail out [censored] started I say what the heck. Why do I save my money (in a bank to boot) for someone else to get a bailout. When the govt can inflate the money supply where is my store of value?

My only hope now is that we have hyperinflation, so all my loans (that I've gotten since the bailout because I don't care anymore) will be paid in worthless dollars. That would make my day.

 

[pickled]

Wow...high energy prices actually helped get the economy back into check from the average Joe's spending like a bunch of drunken sailors on leave!! It was the warning shot that made me pull all of my monies out of the market because it showed how little sense the bigger picture made at the time. We should thank those A holes for driving oil prices up and making us take a hard look at alternatives.

The evil people that we should all hate and want to take a pitch fork to are those soulless people that run the endless green printing press and expand the supply of our fiat currency by trillions!! They threaten the sovereignty of nations with a crooked smile. They also have more power than all 3 branches of g-ment and have done more harm to our people than any donkey or elephant ever could dream of- no matter how stupid they were/are!!

 

[Captain_Klink]

A very nice set of replies. Dailykos just takes what's been reported, but usually does not make it to the corporate owned press, and re-reports it and disseminates it on the internet.
For the real news, nowadays, you have to go to the internet.
The internet is the electronic "speaker's corner" at Hyde Park, London, and I find the "speakers" at dailykos, to have a lot of marbles. Also, if you try to promote or defend a "conspiracy theory", on dailykos, then that gets you banned, so that tends to eliminate the crazies. Otherwise, freedom of speech rules, and unlike here, they specifically ENCOURAGE religion and politics.

 

[river_rat]

Originally Posted By: Pete591
It happened on "W's" guard...who else to point the finger towards?

Greedy corporate America, Regan, Bush senior, and Bill Clinton, and Congress...the list is long.

 

[ToyotaNSaturn]

This kos story reminds me of preachers who cherry pick ("proof texting" is the accepted term) pieces from the good book to prove their point. Anyone can do that but truth is void in these scenarios.

Likewise, this proof texting only plays to peoples fears & emotions thus there is no truth to this story. Like msparks said, "didn't know that our economy was so fragile". Of course, it isn't.

Nowhere in this article does it mention the housing bust. Remember that? Oh yeah, that was completely omitted from the logic path prior to drawing a conclusion. It's not just bad journalism, it's bad blogging. Geez, what's worse than bad blogging?

A little homework shows that the CFTC commissioners are appointed by the big cheese and are overseen by the 100 member group who think they are the big cheese. The CFTC is "breaking" with previous policy, for good reason: they need their jobs going forward. This commissioner's bio is telling, to say the least:
http://www.cftc.gov/aboutthecftc/commissioners/ggensler.html

Again, the Daily Chaos comes to conclusions before enough evidence is put on the table to support their already-decided tag-line. Proof Texting, watch out for it.

 

[MONKEYMAN]

Originally Posted By: ToyotaNSaturn
Geez, what's worse than bad blogging?

Terrible tweeting?

 

[demarpaint]

Originally Posted By: pbm

I agree that speculation (rather than supply and demand) drove oil prices way up and hurt the economy. I do believe that the meltdown of our economy had far more to do with the out-of-control housing bubble which was caused by sub-prime lending. This lending was mandated by Congress so that minority home ownership increased. I believe that Congress has to take the majority of the blame. Throw them all out. That would be CHANGE we could believe in.


Speculation, day trading, greed, creative financing to name a few things is what got us in this mess! People buying houses they couldn't afford with mortages created by banks (perhaps with the help of real estate people) to get them into these homes, when in reality they shouldn't have been able to borrow for them! That along with greed drove prices higher and higher. Then came paying back money borrowed, by people who had no business borrowing that money. 50 year notes, interest only payments for a few years, then start paying the principal back. Give me a break! It snowballed, and IMO is still gaining speed and size!

Here is the mindset some people had, and others were pitched by loan reps. "Gee" since I only have to pay "interest only" for a few years on the mortage maybe I can buy that new car I want. By the time I have to start paying principal and interest on the house I'll have a better job and be making more money! Many people swallowed that hook big time!!!!!!!!!!!!!!! Some of those people got the boot instead of the raise they were hoping!

Now good people who want to borrow money are put under a magnifying glass and denied loans. We're in for some rough times!

Small rant off!

 

[Drew99GT]

OK, Tempest should be allowed to state his point of view in this thread given the arguments that have already been laid forth. Seriously!

There was an entire perfect storm of policies, actions, and occurrences that created this recession. I doubt the oil bubble was the leading cause, and "W"s policies were far from unique as compared to previous contemporary administrations in the grand scale of things in their affect of the economy. If over spending was one of the criticisms of previous administrations and one of the causes of the mess we're in now, god HELP us in the future, because we're going to need it.