I suppose that is it; “Government Policy”. And are we to believe Government is the New God to Worship and of the knowing; is this the new Government definition?
I don’t think we could engineer an Iron lung big enough to make Government work – ; working models and Government ; That is an Oxymoron – Try dysfunctional and stupid- pathological liars that operate on the idea of deceit and deception.
And that is our new Religious order and the new Reich fuehrer Gods the newest crypto proletariats; (Make that Plural) there is more than one pretentious brain dead clowns.
Ooooo beam me up Scotty ; No intelligent life forms here.

Yabby posted, "Bush created this mess and ran the US economy into a ditch, Obama is simply hiring a tow truck to get it out."

Yabby, its more like Obama has taken an excavator and made the hole deeper.

The US economic policy of creating money under Obama will bring about the collapse of the US and possibly the West.

When US Treasury Secretary Timothy Geithner told the Chinese government its investments in the US are "very safe", despite a growing budget deficit (estimated $770bn)

"Chinese financial assets are very safe," he said, DRAWING LAUGHTER from the audience.

The audience laughed because like Obama, he was lying through his teeth
http://news.bbc.co.uk/2/hi/asia-pacific/8076642.stm

It's surprising to Pericles coming to the aid of the bankers.

The bankers are the main culprits who caused the financial crisis of 2008.

It is a common misconception that the Federal Reserve Bank (US) is owned by the government but the reality is that it is owned by the big corporate banks of the US and the UK.
http://www.land.netonecom.net/tlp/ref/federal_reserve.shtml

Interesting videos to watch are:

http://www.youtube.com/watch?v=sFtePsHsUkA&NR=1

http://www.youtube.com/watch?v=3DPfKxOQGHU&NR=1

http://www.youtube.com/watch?v=aeb247Vc1eY&feature=PlayList&p=D40C63A8A78754E6&playnext=1&playnext_from=PL&index=

I know it is a convenient peg on which to hang the blame, Philip Tang, but life just isn't that simple.

>>It's surprising to Pericles coming to the aid of the bankers. The bankers are the main culprits who caused the financial crisis of 2008.<<

The general public, i.e. people like you and me, have been using credit like drunken sailors for many years, to the point where it has become almost invisible - just another expense line, like interest on our credit card statement. Or the interest we pay on our mortgage. Or the repayments on the car.

Banks - like any other commercial operation - are in the business of meeting this demand with supply. They didn't actually "create" the money, as Arjay seems to believe, but borrowed from other sources in order to meet your needs.

Ultimately, governments are in a position to turn off the credit tap, should they feel the need to. Very few did. When the individuals at the bottom of this heap started to default in large numbers, the system suddenly found itself starved of its oxygen - the money that needs to keep circulating in order for it to stop itself collapsing.

That is why many governments around the world - ours included - have chosen to allow Banks to continue to borrow despite the fact that at any other time they would be technically bankrupt.

The system certainly failed.

Its early-warning systems didn't function. Credit Rating Agencies failed in their task to identify toxic loans in the Banks' balance sheets. Salesmen were allowed to continue to sidestep credit requirements in their lending - particularly in the US, but we ourselves had some "Low Documentation" loan pain of our own.

But it starts with us, not with the Banks.

They have played a part, that is true.

But unless you favour the view that nothing is actually our own fault, and that it is always somebody else's responsibility - the government, the Banks, God - to look out for our interests at all times, we, individually and collectively, brought this upon ourselves.

the_sub_prime mortgage crisis was NOT caused by excessive borrowing,

[the default]was the inability..to repay..indexed intrest rates

[where by..via colluded deceptions and self-intrest..POOR people were conned..by bankers/financiers..[to further..over-inflate the real-estate markett]..set up for a future default

[thus the 50 trillion...[securities]created a..SECONDARY hole..that was able to be blamed..on a mere 800 billion of bad/defaulting loans

LOW fixed income..cant cover the INCREASE/intrest..built in by the money-changers..[who on-sold..securitised..their debt into..'securities'..[created by bundeling the mortgauge's,..

then even securitised their worthless DEBT default's..into securities via debt-swaps,..PLUS,turned THEM all..into..'AAA-rated'securities..by ratings agencies collusions

[they..[we]insured them[..thus even insurances/underwriters got their 7 trillion in govt bailouts]

the 43% of foreclosures..lost their homes..while the banks got a masive bailout..[but their max possable default on mortgauges was only 800 billion..[the big criminals/ursurors]..did much bigger crimes/frauds,..blamable on the mug punters believing the white collar spin

noting turn-bull cashed in,..when he via insider/traiding got told of the up-comming collapse

There is no doubting the central role played by subprime/SECURITISED loans..NOR THE CLEAR COLLUSIONS THAT HAVE BEEN EXPOSED..in the trillions of bailout dollars..obtained by ALLOWING the collapse..[real criminal acts..[while cops are kept busy busting kids for drugs]

..an threatening increase in foreclosures led to a drop in the price of housing and the hastend the bursting of the “housing bubble”..a money bubble was clear pre 911,..but further expanded by the last bail out..[post 911]..that bail out that directly caused..THIS securities bubble!

There is widespread agreement that relaxed'..credit-standards'..were primarily responsible for the excessive lending/securities creation...WHO RELAXED THE standards?

In 1999,..the Clinton administration pressured Fannie Mae,an intermediary in the secondary mortgage market...''SECONDARY'..get it not..'primary'..into increasing its risky borrowing to lower and middle income people..setting them up as scape goat..of course..[the RICH blame the poor]..how dare they dream/believe the boom would contuinue...

the mugs believed the media it was..[buy or get priced OUT of the market]..lest we forget..bankers KNEW they would default...[so got THEIR cash back by creating'mortgauge_securities'..[about the same time howhard gave us compulsory super..[to buy them up with our compulsory-super]

the poor are screwed both ways..[then again conned via another..'security'..their pension/super/funds..insuring..[UNDERWRITING]..the deals...lol....[then bailing the bankers...not the mortgauge holdres..with a mere 800 billion..RISKING default....lo

*[..thus even insurances/underwriters got their 7 trillion in govt bailouts*

ROFL UOG, who got 7 trillion $? Next time you have breakfast, read
what is written on your packet of cornflakes. It can only improve
your understanding of economics :)

Pericles is correct once again, Australians like Americans have
been living it up on easy credit. It had to end some day.

Our housing market is a little different, in that we actually have
a shortage of houses, wheras in America, because of cheap land,
they just kept building new ones. Now they have a surplus of houses
which they cannot sell.

Americans don't have State Govts slugging them with 100'000$ plus
fees for a housing block, as they do here.

Their jingle mail is a real problem. I assume its due to Govt
regulations, but in Australia if you borrow money, you are
responsible for your loan, even if the value of your house does
not cover the loan. They can send you bankrupt. Not so in America,
if the house value falls, you can send them back the keys.

So smart Americans, who paid too much for their house, can now
return the keys to the bank and buy a much cheaper house around
the corner.

Philip Tang, the present US strategy of printing money is largely
a policy of Bernanke, the head of the Fed. He spent his life
studying why there was a depression in the 30s and how one could
be avoided in the future. The idea is to cut the money supply once
again, when things improve and are sorted out.

Now if you think that we would all be better off, if he had simply
done nothing, let the global banking system collapse and land up
with 30% unemployed, well that is your right, but I don't agree with
you.

Thanks for the links Philip Tang.Gerald Celente has an astute understanding of the crisis.As he said you have to produce your way out of this mess and not print money.Glen Beck,"I hope to God you are wrong."So do I.Things are not shaping up well.5 yrs ago Gerald Celente said that hae would have laughed about the FEMA camps being constructed to detain US citizens.They are looking down the barrel of total economic and social collapse.Obama hasn't a clue.

Ron Paul now has 44% of Congress supporting his bill,but this may be too late.Apparently the Fed is mounting a publicity campaign to discredit the Ron paul movement.Things will get very ugly and dirty from now on.I think that Obama will be pressured into escallation of war to distract attention from home woes.