Wednesday, April 4, 2012

What Did NOT Cause the Great Recession of 2009

America’s private sector. No, the recession was caused exclusively by the federal government. 

If the Federal Reserve had not ballooned the money supply, real estate prices would not have risen to the stratosphere, only to plunge thereafter to earth. 

If government had not required banks to lend so much of their mortgage money to people who couldn’t afford repayment, the banks would have avoided widespread foreclosures. 

If government had not guaranteed bank deposits, all financial institutions would have taken less risk by avoiding excessive borrowing.

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