sheople

Real Cause of This Financial Crisis? Global Hunger for Savings Instruments

What you say is true, but didn't the moving of manufacturing out (with government help) and the exporting of cheap labor (with government help) precipitate the whole mess?


On Oct 22 07:34 AM a fat panda wrote:

> Great. We have an article about how many how many explanations there
> are, and we get 3 more.
>
> Guys, It is consumer debt that caused the problems. Consumer debt
> enable people to pull demand forward creating the revenues that made
> the whole thing look reasonable. The low interest rates let people
> consume hamburgers today for 2 on Friday. Only it wasn't hamburgers.
> It was cars, and houses, and TVs.
>
> That is layer one. In the next layer, the TV manufacturers became
> 'rich' selling future demand today. The workers wanted more pay so
> we set pensions at 8.5% discount rates so that we wouldn't have to
> fund them. At one point, America had something like 9% of the population
> was millionaires, all selling tomorrows demand today.
>
> It wasn't just housing that had a bubble. American expectations were
> in the greatest bubble in history.