Quote:
Originally Posted by GregE
Good post.
I still maintain however that, with stricter lending regulations in place, the bubble would never have gotten anywhere near as bad and might even have been sustainable for a bit longer.
In any case, the subsequent recession would have been as you described and no trillion dollar bailouts would have been necessary.
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You do realize that this monetary and fiscal mismanagement started after we got off the Gold Standard the final time in 1971 right? This is when the government expanded their currency via printing press, people started living beyond their means, and we moved from a manufacturing economy to a service economy. The housing and financial bubbles were just a tip of the iceberg. We were fucked inevitably.