Economic twattery

The 2008 crisis caused a recession that rivalled the Great Depression of the 1930s, drove US unemployment up to 10% and burst a housing bubble that was both tragic and almost beyond parody: people with no income, no job and no assets were being given mortgages to buy homes they couldn’t afford.

The Observer of course.

The error? The housing crash came first. It was the realisation of it that caused the financial crash and the recession. And even without the financial crash on Wall Street there would still have been a recession.

9 thoughts on “Economic twattery”

  1. Bloke in North Dorset

    In the USA it wasn’t even when house prices dropped that kicked off the problem, it was when they stopped going up and those on deferred interest rates couldn’t remortgage to get low rate offers.

  2. people with no income, no job and no assets were being given mortgages to buy homes they couldn’t afford

    A deliberate policy introduced by Rapey Bill in the name of equality of outcome and ultimately backed by the taxpayer.

  3. Not to mention the “125% Mortgages”… So you could not only buy a house that you couldn’t afford, but also a new Porsche 4×4 that you couldn’t afford to run!

  4. The crash came at the realization that Barrack Hussein Obama was going to be President. The malaise lasted until he was replaced.

  5. ‘ people with no income, no job and no assets were being given mortgages to buy homes they couldn’t afford.’

    (People = African-Americans for whose votes Billy Clinton went shopping with the promise of mortgages they couldn’t afford.)

    Which led to all that poison in the mortgage-backed securities which with a bit more Government input resulted in the banking crisis.

  6. people with no income, no job and no assets were being given mortgages to buy homes they couldn’t afford

    Due to a Bill Clinton law proposed by Obama: Banks were compelled to grant x% of mortgages to “people with no income, no job and no assets to buy homes they couldn’t afford”

    Of course Left msm will never admit this, bash the banks/capitalism is their agenda

  7. And AG Janet Reno personally contacted the big banks to threaten them if they failed to comply. Jimmy Carter builds Habitat for Humanity homes. Bill Clinton built the real estate bubble.

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