The 2008 Recession

Let’s make a quick point about the 2008 recession.

The response to it was adding a lot of regulation to the banking sector. But is that a coherent response to the problem that happened?

You can have the most severe restrictions with the most punitive consequences on what bankers can do, but if you are basically forcing them to take loans from a bunch of people that won’t be able to pay them back, it’s just going to be a catastrophy either way.

If we take the reaction, the new regulations, and apply them to the situation that they were conjured to address, it is perfectly useless. The new regulations would not have prevented the sub-prime mortgage crisis if they had been in place before it happened.

So, and this is not rhetorical, what was the point of those regulations?

It’s called predatory lending.

Banks did calculations that they could siphon more money in the form of property if people defaulted on a loan that was calculated to be less than their total value.

If there was a problem with that, banks calculated that Obama would make people even poorer by bailing the banks out with corporate welfare by using people’s tax dollars.

There was no way to lose for the banks.

The plan was to deplete the middle class of trillions upon trillions of dollars… and it worked.

You have it wrong as usual.
The crash of 2008 was due the existing regulations being ignored and not scrutiny or back up.
Mortgagees were sol illegally in a frenzy of bonus payments which pushed subprime mortgage deals on people who could not afford the pay them back; and worst still being pushed on those that deserved better mortgages but were discouraged from them because they did not attract the bonuses for the salesmen.

Before you make a damn fool of yourself again to make some idiotic “small government” ideological bullshit point, you ought to acquaint yourself with the facts.

I’ll wait for somebody who actually knows what happened or is interested in knowing.

Lol a frenzy of bonus payments. The depth of the ignorance.