Why -is the usa in economic crisis?

The banks were loaning out to much money. Loans that people could not afford and the banks weren’t getting their money back.

It’s a perfect storm. There is no 1 thing you can point to and say “aha!”. The main factors were:

1. The existence of ARMs that allow people to get into debt over their head without realizing it until later

2. The securitization of mortgages that pumped more money into the system, thus encouraging loose lending standards

3. Government loan guarantees that allowed mortgage initiators to pass the risk onto someone else. Anytime that happens, people will trade risk for profit since the risk is being born by someone else

4. Artificially low interest rates manipulated by Greenspan to hold off an implosion, thus making the implosion worse. It’s no accident that Greenspan decided to retire right before the bubble popped. He knew it was going to pop, because he was greatly responsible for it

** The Federal Reserve does not loan* money to the U.S. government at interest. It’s not a central bank. They can increase the money supply by purchasing T-Bills.

The last time I checked, purchasing a debt instrument was considered the same thing as loaning money. Yes, the Fed is a central bank. Yes, the Fed earns interest on the Treasuries it purchases (although some of that gets refunded back in a byzantine manner).

Been watching a little too much Zeitgeist, I see.

The Federal Reserve does not loan money to the U.S. government at interest. It’s not a central bank. They can increase the money supply by purchasing T-Bills. And as for national debt, businesses and individuals in the U.S. have as much to do with it as the Federal Reserve. It’s not as if there is debt simply because the Fed wills it to be so. The U.S. debt sounds staggering to people, because in their minds they compare it to their own credit card debt, which it isn’t. The national debt is actually very manageable and its existence in no way enslaves anybody: it doesn’t enslave us to the Federal Reserve, the Chinese, or anyone else.

Also, the Federal Reserve has been audited several times, and is overseen by Congress, who it must report to on a regular basis.

The economy did have structural problems when Obama came into office, some of which are still around and probably always will be. Tim Geitner did not crash the economy. I agree the stimulus package has had questionable results and in many cases went to the wrong people with little or no oversight…but very little of what you said is factual and is really just another conspiracy theory that helps nothing.

I think it started with reagan and his massive deregulation that allowed banks and other multinational coporations to engage in practices that eventually caused this econmic collapse.

How comforting…crooks overseeing crooks…

More of a response to an error in fact than trying to defend the system.

Too bad we can’t blame it on one institutiion or one administration…unfortunately, the ball got started rolling in the 1990’s …and we reached cliff edge a couple of years ago.

Also, the Federal Reserve has been audited several times, and is overseen by Congress, who it must report to on a regular basis.

How comforting…crooks overseeing crooks…

p

Try starting with a Wikipedia article on the topic, one that uses references and cites sources. Then, read the cited articles and books, and go from there. The causes for the crisis are too complex to be explained in a single post by anyone here.

not really but thanks

Blame it on Bush. He’s the reason why America has issues.

Corruption in the Government maybe?

bcus the bankers are DUMB hope I helped :D

lol sry thts pretty much all I know