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Talk:Financial Crisis of 2008 (view source)
Revision as of 18:52, December 2, 2008
, 18:52, December 2, 2008→Separate article needed on recession
LT, I read the 2% growth thing earlier. I know about the [[placebo effect]] and the [[self-fulfilling prophecy]]. One reason my students have done so well is that I help them to see their potential and encourage them to fulfill my (our) [[expectation]] for them. You might even have heard of the blue eyes, brown eyes test. Economics is not a [[physical science]]. The economy does not "go" into recession. People lead other people. Each decision to buy or to save, to invest/hold/sell is a [[choice]] made by a human being with [[free will]]. (Stop me, before I start giving the [[George Bailey]] Savings and Loan speech! ;-) --[[User:Ed Poor|Ed Poor]] <sup>[[User talk:Ed Poor|Talk]]</sup> 13:27, 2 December 2008 (EST)
LT, I read the 2% growth thing earlier. I know about the [[placebo effect]] and the [[self-fulfilling prophecy]]. One reason my students have done so well is that I help them to see their potential and encourage them to fulfill my (our) [[expectation]] for them. You might even have heard of the blue eyes, brown eyes test. Economics is not a [[physical science]]. The economy does not "go" into recession. People lead other people. Each decision to buy or to save, to invest/hold/sell is a [[choice]] made by a human being with [[free will]]. (Stop me, before I start giving the [[George Bailey]] Savings and Loan speech! ;-) --[[User:Ed Poor|Ed Poor]] <sup>[[User talk:Ed Poor|Talk]]</sup> 13:27, 2 December 2008 (EST)
::People make decisions all right, and the decisions they are making now is to be as conservative with their money as possible and avoid risk. -- most of the financial risk takers have pretty well been ruined. There is numerical data to show the trend is very dramatic this year: see [http://www.rasmussenreports.com/public_content/business/indexes/rasmussen_consumer_index Rasmussen index of consumer confidence] which fell from 120 (early 2007) to 64 right now. Bush told people to spend money last spring but they did not. Maybe it's a case of wise-for-me but bad-when-everyone-does-it.[[User:RJJensen|RJJensen]] 13:33, 2 December 2008 (EST)
::People make decisions all right, and the decisions they are making now is to be as conservative with their money as possible and avoid risk. -- most of the financial risk takers have pretty well been ruined. There is numerical data to show the trend is very dramatic this year: see [http://www.rasmussenreports.com/public_content/business/indexes/rasmussen_consumer_index Rasmussen index of consumer confidence] which fell from 120 (early 2007) to 64 right now. Bush told people to spend money last spring but they did not. Maybe it's a case of wise-for-me but bad-when-everyone-does-it.[[User:RJJensen|RJJensen]] 13:33, 2 December 2008 (EST)
:::The housing problem, precipitated by Congress, in particularly Barney Frank, Chris Dodd, Chris Cox, ACORN and others, pressuring lenders, banks, Freddy and Fannie, to approve loans to otherwise unqualified applicants, the Real Estate and Building industries, alway greedy, encouraged buyers to believe the markets would go nowhere other than up, all are the cause. Banks overvalued homes. People treated their homes the same as they did their brokerage accounts, buying, selling, buying again, each time stepping up another 100K. All madness. That key fact, and as Jensen said, the media, invested in Bush-bashing and getting Obama elected, repeatedly saying we were in a recession, or worse, over and over again, did indeed, eventually, months later, lead people to believe their false assertion. As inevitably as day follows night, they cut their spending, put off big ticket items, and we were off to the races. Our "problem" led to an over-all lack of confidence, not only by consumers, but a lack of confidence between banks and investment brokers, retirement groups like CALPERS, which in turn started causing the same lack of confidence in the UK, and then it was a world-wide crisis. --<font color="#1E90FF" face="Comic Sans MS">[[User:TK|₮K]]</font><sup><font color="DC143C">[[User_Talk:TK|/Talk]]</font></sup> 13:52, 2 December 2008 (EST)