Quote:
Originally Posted by Robbie
Please look up the history of this country. There are no long sustained periods of economic growth as you are trying to say that aren't part of a "bubble". The 90's were the tech bubble. Lasted about 5 years. Not a bad run. The 2000's were part of the housing market bubble. Lasted about 6 years. What parts in our history were not tied to a "bubble"? And how long has any big economic growth period ever happened? Yes, there are times with flat line economy where things just sort of sit. But even those only last about 5 or 6 years. (the mid 80's for instance). The economy is cyclical. What goes up MUST come down. You will never have 20 years of great economic growth. Or can you point me to a time where 20 years went by without some sort of mild recession happening every 5 or 6 or 10 years?
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The bubbles are cyclical, the growth is not. When the tech boom happened a bubble ran up the stock market and that bubble burst. Up and down for sure. However the sustained growth of our economy from that tech boom is still felt in a massive way through every part of our economy. Cisco, Google, Apple, Microsoft, a massive increase in productivity from every other sector benefiting from their innovations. When Railroads were built there was a massive bubble that was cyclical, but there is also residual growth of our economy that is still felt to this day every time you get a product that was shipped via rail. Steel still has a profound impact on our society... so does electricity.
So tell me, what benefit long term did AIG and the Banks bring to our society with the mortgage bubble? How exactly did mortgage derivatives spur innovation or real economic growth? They were a short term wealth re-distributor in which taxpayers and defaulting mortgagees had their money shifted to banks too big to fail and the guys who made the door handles. That's great if you made the door handles, but not economic growth.