teech meh sum ekonomikz plz

[ColonelTEE3]

So i'd like to know whats going on with the world and my winter quarter registration is already filled up with stuff and i didn't get an economy class in there anywhere. I would like to know what is causing the recession we're in, how it happened and what needs to be done for us to come out of it. So someone teach me in words as if i was a five year old.

PLZ & THX

[rockyraccoon]

So i'd like to know whats going on with the world and my winter quarter registration is already filled up with stuff and i didn't get an economy class in there anywhere. I would like to know what is causing the recession we're in, how it happened and what needs to be done for us to come out of it. So someone teach me in words as if i was a five year old.

PLZ & THX

the cause of the recession is the rioting forumfallers from lack of beta.

[Ankh]

The only way we can make the economy better is by throwing money into the money hole.

[DocGonzo]

the gamblers bet incorrectly

that'll be $1000 USD plz

[alfaroverall]

The exact cause? I'm sorry man, but even the Ph D economists aren't exactly sure of what exactly caused this whole thing. Don't try to ask us to explain it when no one really knows.

[ColonelTEE3]

Alright, not the exact cause, but maybe contributing factors?

[AmonDominus]

You have to spend money to make money.

[Rhambo]

You have to spend money to make money.

or you can just steal stuff

[ColonelTEE3]

So... everybody just stopped spending less recently, all at once?

[alfaroverall]

Alright, not the exact cause, but maybe contributing factors?
Subprime mortgages. Banks made loans to people who couldn't really afford them. This was especially bad when they were adjustable rate mortgages. The people taking the loans were expecting to quickly sell the house at a profit and buy another because of the continuous and rapid rise in the price of houses. When prices began to fall, people were unable to sell and unable to pay for their houses, and were then foreclosed on. The debt accumulated by the banks in the process of these mass foreclosures caused them to struggle or, in some cases, collapse. The banks are the driving force of the economy as a whole in this country (as opposed to things like manufacturing) and so the economy as a whole suffered.

There's one factor. There's a helluva lot more.

[DocGonzo]

here is the nut of it all (http://www.nytimes.com/2008/09/28/business/28melt.html?_r=1&em)... read the whole article, there's more than one page...

learn2google, imo

[ColonelTEE3]

So banks don't have some kind of credit history that tells them whether or not these people will be likely to pay back the loan?

Also, what happened to your dozen-odd thousand posts?

[lafayette]

Fractional reserve banking, fiat money, and the monopolyman's magic printing press.

Oh and corporatism.

[alfaroverall]

So banks don't have some kind of credit history that tells them whether or not these people will be likely to pay back the loan?
They do. They just started lessening their requirements. The reasons for that are as complicated as the reasons for the recession itself.

Also, what happened to your dozen-odd thousand posts?
I have 14,000 posts. My clan tag supersedes my post count tag, however.
Fractional reserve banking, fiat money, and the monopolyman's magic printing press.

Oh and corporatism.
Those are some really long term causes, lafayette, and they've all been around for nearly a century; in some cases over a century. To say that they alone caused this is to simply ignore history. Those are definitely involved, sure, but they alone didn't cause this.

[DocGonzo]

Fractional reserve banking, fiat money, and the monopolyman's magic printing press.

Oh and corporatism.

don't forget 33 to 1 leverage on derivatives and unfunded credit swap frauds that bypassed the entire insurance regulatory system...

[Killuminati]

Greenspan said, "woops!"

[DoveAlexa]

It was the Illuminati Jew republic of the lost city of Atlantis.

Or so I am told.

They also did 9/11

[PaleOne]

www.mises.org

all the economics info youll ever need.

[omnigol]

The only way we can make the economy better is by throwing money into the money hole.

/thread

[Vanno]

It was Bob Saget.

[losinglife]

Subprime mortgages. Banks made loans to people who couldn't really afford them. This was especially bad when they were adjustable rate mortgages. The people taking the loans were expecting to quickly sell the house at a profit and buy another because of the continuous and rapid rise in the price of houses.

You can thank TLC for giving all the dumbfucks that idea.