Problem with the 'inside job' argument imo is all the US companies in it went bankrupt. The politicians only kept them out of bankruptcy court protection and restructuring because they figured it improved their chances of re-election.
I do agree the politicians took advantage of the opportunity to give billions to the people and businesses that have been funding their election campaigns for decades. Helping improve their next election chances. But this didn't cause the crises. It just caused the governments response to the crises.
The major contributing factors, imo, was government regulation and Keynesian economic theory. Sadly many university educated people are not taught real economics, but, Keynesian economics whilst believing they have been taught real economics! Imagine a world with Astronomers trained not in Astronomy but Astrology. Now add government regulations and I think you have the ability to explain how the worlds greatest economy has been brought to its knee's.
Wall St banks and other financial firms can only sell their crappy products because of government regulations. Absent the 'approved by government' and 'don't worry government rules and regulations are protecting you', people would do their own due diligence. Just like buying a new computer or TV. I think most people probably know more about their mobile phones than the financial products they buy from government approved 'advisors'.
The collapse was not only predicted by real economic theory, it was publicly explained in detail in advance by people who understand real economic theory.
These videos show what I mean:
Peter Schiff Was Right 2006 - 2007 (2nd Edition) http://www.youtube.com/watch?v=2I0QN-FYkpw
Peter Schiff Mortgage Bankers Speech Nov/13/06 http://www.youtube.com/watch?v=jj8rMwdQf6k
- This second vid is a one hour presentation, without notes or Teleprompter, its ending is priceless. An academic with University text books reads a quote from some economics professors. right their, in that moment, after everything that was just said, you can see the cancer inside the US economy. IMO!!!!!!
This book explains the fundamentals of real economics imo.
In conclusion to my saturday afternoon rant, when its raining after being sunny all week!!!!!!!!!!!!!!!!!! The Fight between economists continues, some say its the fight of the century:
http://www.youtube.com/watch?v=GTQnarzmTOc
MST Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
