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View Diary: Rubio's big lie: Government created the housing crisis (85 comments)

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  •  "Bubbles" Greenspan created the housing crisis (11+ / 0-)

    They needed to raise interest rates in 2006 to sop up all of the loose capital that was going into the housing bubble.  This was OBVIOUS to economists everywhere (and I was warned by one).  In fact, there was a very clear inflection point in the summer of 2003 where rates should have started back up and didn't.

    But people were making money hand-over-fist and those Wall Street types love bubbles.

    Remember, the money from the deflating Dot-Com bubble had to be put somewhere, and housing was it.

    This is also why there was a push to 'privatize' Social Security... that would have created an even BIGGER bubble.

    Bubbles have to end, and it isn't pretty when they do.  Here we are.

    TL;DR: Greenspan loves bubbles.

    Happy little moron, Lucky little man.
    I wish I was a moron, MY GOD, Perhaps I am!
    —Spike Milligan

    by polecat on Wed Feb 13, 2013 at 08:20:18 AM PST

    •  Hmm, then it *was* the government (4+ / 0-)
      Recommended by:
      charliehall2, Sparhawk, gjohnsit, shoeless

      or at least they were intricately involved.

      going back to the Clinton years when deregulation of the financial sector really took wing.

      •  Then What Rubio Said Must Be True (1+ / 0-)
        Recommended by:
        cherie clark
        What caused the crisis was deregulation and greed. It was the cozy relationship between Washington and Wall Street that led Congress and regulators to "let the market decide" and have free rein.
        After all isn't Washington the Government, notwithstanding the fact that the GOP had a very strong hand in fostering and maintaining the cozy relationship.

        "Facts are meaningless. You could use facts to prove anything even remotely true." -- H. Simpson

        by midnight lurker on Wed Feb 13, 2013 at 09:28:49 AM PST

        [ Parent ]

        •  No. What Rubio said was not true. (3+ / 0-)
          Recommended by:
          shanikka, JerryNA, armadillo

          He said that the government caused the problem. In truth, the government just allowed the crisis to happen.

          That is a very important difference.

          Just when you thought there wasn't a dime's worth of difference between the two parties, the Republicans go and prove you're wrong.

          by shoeless on Wed Feb 13, 2013 at 11:02:39 AM PST

          [ Parent ]

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