The Economic Crisis Explained

[xenofungus]

What happened?

The news says poor people buying houses and corrupt politicians caused the financial crisis. The news is wrong.

I wrote this mainly for srhadden, but I hope most of you will read it.

What really happened?

Comments

[srhadden]

You wrote all this??

[panzergeneral]

baselinescenario.com
death to the merchant class

[panzergeneral]

actually, the 5/9/08 show of This American life explains exactly what happened

[xenofungus]

Listening. Thanks for the link.

[srhadden]

This is appreciated. But I'm confused. You point out that the US government has a lot of debt. And then you point out that the debt is exported to China. But then you don't say anything else about China or our foreign debt, or its role in the crash. I'm confused about why you mentioned China at all, and why you put up the graphs depicting our national debt, when you don't explain what this has to do with the recent crash.

The closest you get to saying what role our foreign debt had in the crash, is when you initially say "American has a lot of debt. The people we owe money to figured out that we probably couldn't pay it back. Everybody panicked." So the government of China panicked? This is part of what caused the crash? This doesn't sound right.

[xenofungus]

That gets rather involved pretty quickly. I'll make another post to answer your questions.

[surferpete]

This explains a lot, danke.