who can you blame the resession on?
i hear its the oil companys and i hear its big bussinesses like walmart that import every thing from china but i have heard lots of sides just tell me what you think it is and why
i hear its the oil companys and i hear its big bussinesses like walmart that import every thing from china but i have heard lots of sides just tell me what you think it is and why
Anonymous
Favorite Answer
First, it is important to define "recession". Officially, a recession is two quarters of declining GDP. While we are likely not right now in a "recession", things are shakier than they used to be. This all started with the run up in prices of housing and other things over the past 5+ years. People would buy houses they couldn't afford with the help of creative financing by lending institutions. People figured if they couldn't afford the payments in the future, they could just sell the house and have a nice profit. Like all markets that get too hot, housing pulled back and suddenly people couldn't sell their houses when they couldn't make payments on their mortgages.
Then the big problems began. Lenders who give you a mortgage sell that mortgage as soon as possible. Hedge funds and big investment firms eventually buy up these mortgages and trade the individual mortgage payments. This pass through mortgage market is HUGE (think trillions). When people stop paying their mortgages, the payments don't make it to the hedge funds and investment banks and they take on big losses.
When big banks take big losses, they tighten their belts and don't loan money to smaller companies that need to buy machines and buildings, make investments in their business, and hire people...these smaller companies now can't grow.
Combine all this with rising gas prices (due to limited supply and growing demand around the world [India and China], not the oil companies) and rising food prices (due to crazy ethanol mandates that made corn prices skyrocket, which in turn made farmers grow more corn and less other crops, in turn causing other crops to rise in price) and bam! you have the ingredients for recession.
?
No, you can blame the international banking cartels. But O`Bomber is where the Buck stops. But he gets paid well enough for that and allows himself to feel posh and swanky because he has an exclusive, rent-free, address. He ain`t ever going to be poor is he? The Banks are out of the reach of the citizens and will need feeding constantly with train loads of your hard earned cash at the risk of forfeiting the property of the Nation. Like some insatiable Dollar hungry beast. When you run out of snacks and dinners for the great beast, he will eat you and own your country. For those of you that escape his ever-hungry mouth, if you work hard, he might let you rent some of it.
crapaudblanc
I heard it is because of the down turn in grammar and spelling schools. Suddenly the number of students have dried up and the schools were forced to lay off grammar and English teachers, who themselves stopped spending. The lack of grammar test has caused Scholastic and other test prep companies to go bankrupt and several thousands of people were laid off. Those people then stopped paying their mortgages and there you go the RECESSION is on…we just have to blame our poor English skills.
Eddy T
The greed and poor corporate governance of mortgage and financial companies. Putting aside integrity,competence and relacing them with risks and speculations for short term profits.
southarkansas
mortgage companies and credit companies-they have the habit of loaning money to anybody and everybody regardless if they are able to afford it.It bit them now they want the government to bail them out