ECONOMIC CRISIS EXPLAINED
First, we have a Republican administration that doesn't like big government, and which gave huge tax breaks to rich people.
Second, these same Republicans failed to regulate banking and mortgage lending institutions because we have a Republican administration that trusts the free enterprise sector to make smart decisions.
Third, the mortgage banking industry made a trillion dollars worth of stupid decisions lending money to people who couldn't afford mortgage payments.
Fourth, all these people buying houses they couldn't afford spawned a huge construction boom.
Fifth, when the people who couldn't afford the stupid mortgages they were sold, they defaulted, throwing the stupid lenders into bankruptcy.
Sixth, the stupid mortgage lenders managed to sell their stupid mortgage paper to even stupider investment banks who then packages all this garbage paper and sold the crap to just about everyone in the world.
Seventh, as even more people defaulted their mortgages and abandoned their homes, the supply of vacant homes started driving down the value of homes, dropping the values below what many people owed in mortgages on them.
Eighth, even more people defaulted their mortgages because the home values had dropped. More vacant homes glutted the market, driving home values down even more.
Ninth, the new home building industry virtually shut down because no one was buying new homes when you could steal one out of foreclosure. Thousand of construction workers lost their jobs, creating even more people who couldn't afford their mortgage payments, increasing the volume of defaults and foreclosures.
Tenth, the Bush administration started bailing out financial institutions that were involved with all this stupid lending, leaving only Lehman Brothers to have to file for bankruptcy probably because someone in the Bush family got stiffed by the Lehman bunch in an oil deal.
And so here we are.....
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