Five Top Real Causes of the Great Crash of 2008

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”. ;)

4 Responses to “Five Top Real Causes of the Great Crash of 2008”

  1. Stacey Derbinshire Says:

    I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.

  2. mcconnell Says:

    Also, banks were forced to make these unsound loans (subprime) to risky new homeowners with bad credit ratings or don’t have enough money to make payment should the variable inreterest rate go up, which it did and caused massive number of foreclosures that FM & FM had to buy. And the rest is history leaving taxpayers with the biggest bill in history.

    Thanks Barney Frank and Chriss Dodd who helped ensure this would happen. Typical liberals.

  3. Picard90 Says:

    Pure, selfish greed? Well, I do agree that greed did play a big role in the Great Crash of 2008 (I like it, I’ve been trying to come up with a better line, but I think you nailed it). But it is also what drives the stock market and US capitalism in general.

    It is my feeling that the cause of the Great Crash cannot be pinpointed clearly. There were warning signals, but they were ignored, and to be honest with you, we got what we deserved for playing fast and loose with the stock market.

    But the impact of the Great Crash could have been shortened if we simply let it collapse. In retrospect, perhaps passing the 700 billion bailout was a major mistake. We simply should have taught every bank and big corporation a real hard lesson in developing wise business practices by letting where chips may fall. I don’t care if it takes 20 years to repair our financial system back together, if it means taking off dead weights on US economy. Unfortunately, the bailout has passed and it will be misused as to permit “professional” greed to continue unabated.

    As a matter of fact, President Obama wants to use the last half of the bailout for infrastructure projects, which I think is a BIG, BIG, BIG mistake. The biggest problem right now is conusmer self-confidence has just taken a big major hit, and a sprinkling new bridge or road won’t booster that morale at all. Thus, it will turn out to be a waste of money and we’re going to end up owing money to foreign powers (where do you think money will come from?).

    I have a bad feeling that we haven’t seen the worst of the Great Crash…yet. Especially if President Obama’s economic policies turn for worse, considering his socialist tendencies. The next four years will be a painful time for all of us….


  4. mcconnell Says:

    Righto. And we will know who to thank for. …..the voters.

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