Crisis

Rahm Emanuel re-popularized the saying, "Never let a good crisis go to waste". Rahm Emanuel re-popularized the saying, "Never let a good crisis go to waste", he was talking about how to deceive people (while in the throws of panic) for your political ends. And that was taken to heart by those deceiving people on what happened in the economic crisis of 2007. This section debunks a lot of what did and didn't happen. ℹ️ Info           ~ Aristotle Sabouni Created: 2019-01-31

Economics, Crisis • [6 items]

Big Fraud Theory

There are a few books or movies like "The Big Short", Liar's Poker, who float this Big-Fraud theory (BFT): that the 2008 Financial Crisis was because of Fraud. It is loved by Hollywood, the Media, Progressives (Elizabeth Warren, Bernie Sanders), who know better but want to distract and enrage the gullible. It's becoming the most widely spread theory because simply hate and ignorance spread faster than information, complexity, and introspection.

CRA, Fannie-Freddie Theory (CRAFFT)
CRA->Fannie/Freddie theory (CRAFFT) is that CRA requiring high risk loans, and Fannie/Freddie buying them up and bundling them (GST's) let politicians get loans to poorer people with nothing down. But when real estate started going down, they all walked. With all the defaults, banks were getting credit squeezed by regulations, so couldn't loan, and the credit market froze.

Financial Terms
These are a bunch of financial terms (concepts really), that you can scan to get familiar with the jargon and ideas. Especially before reading the Financial crisis of 2007-2008, but they're good jargon to know when watching financial shows or reading financial press.

Financial crisis of 2007-2008

The left's view of the financial crisis misses on everything from how over-regulated we were, to the causes of the criss, to what happened during it, or why we pulled out. They can't tell you how removing Glass-Steagall or derivatives caused the crash, or why it never happened anywhere else that didn't have Glass Steagall. But if the facts don't fit your narrative, just lie louder, and attack any sources that question you.

Glass-Steagall
Glass-Steagall was the 1930's new deal regulation that said Commercial and Investment banks had to be separated. There would be no "universal" banks (that did both). In theory, by separating sides there would be more transparency, and people might behave less risky. In truth, there's just more inefficiency and the same risk.

TARP
Troubled Asset Relief Program: this was Government forcing Banks to take money, so they could comply with government regulations to make loans. All to get around a crisis that government (mostly Democrats) created. Then Democrats blamed the banks for taking the money, and used it as an excuse to put more regulations on the banks.

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Economics The study of choice, scarcity, Social reactions to policies, and unseen consequences.

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