Reflecting from what had happened to the U.S. economy last year, these top five factors below are what really caused the Great Crash of 2008. Note these factors have culminated from mid-1990s, in spite of Bush’s insistence on tax cuts in 2001 and onward, as he hoped for, would lead to a gradual reversal of market recession and that was all before the 9/11 attacks. Unfortunately, from that tragic day, the war on terror and Iraq have upended Bush’s long-term economic plans to a point. Although, Bush was blamed for poor economic planning in his first term, however, the real culprit was Congress, notably Democrats, that had repeatedly stalled Bush on tax cut plans – which would lead to boosting long-term investments in the U.S. economy and job sectors, emphasize on the “long term”. Nevertheless, that no longer matter now as Bush is out, Obama is in. Onward to the real causes of the Great Crash of 2008 below:
- 5 – The failure of the government regulators to keep watch on the stock markets and financial firms/banks.
- 4 – Horrible financial management by many top financial firms and banks.
- 3 – The mainstreamed media’s overhyped, overblown and confidence-eroding coverage of the US economy, all this to benefit those who wanted to see the US economy to fail and make gains from it.
- 2 – The FreddieMac & FannieMae lending debacles and the Congress’ failure to tackle them on.
- 1 – Pure, selfish greed that took precedence over the benefits of free market system/capitalism and badly screwed up the economy in the process.
That summed it all up.
If you say I am wrong on all, please comment. I’m all “eyes”.