Thread: What caused the recession?

A common view of what caused the recession in the U.S.was the obtainment of debt far beyond the means of those who could pay such amounts back. I agree with that.

The debt I've carried has generally been accepted to be "normal": a mortgage and a car payment. Aside from that, I have no credit card debt and no other loans. However, even so, this "recession" has fostered a desire for me to swing to what most in the U.S. would consider extreme. To date I've seen home mortgage and car loan debt to be "necessary evils". I'm fast considering them to be plain evil (in a figurative sense). I'm making changes in 2011 to sell my home and hopefully come out a wash (having no equitable profit after the sale) and moving my family into half of a duplex of which we'll be caretakers and be able to pay reduced rent, the balance of which and all other "disposable" income to be saved very aggressively and for years to come. At this point, I would much rather sacrifice and pay for things in cash than take on debt and find out a second time that "the market" after being manipulated, erases any equity I would otherwise have. I've heard sound bytes from some economists warning people that at this point if people DON'T start to spend, spend, spend, the economy will only get worse. Not this guy.

BTW, I believe this "recession" is far from over. I think it's just begun and the economy is being propped up like a dead bear for a hunter's photo op. Many states in the U.S. are reported to be tottering on insolvency. Continuing unemployment benefits make things look better than they are in the short term. I can't help but feel that the "recession" was just the initial manifestation of some greater plan by some, who for whatever reason, have a vested interest in purposely bankrupting the U.S. Yeah, yeah, I must be some sort of conspiracy nut.

One more thing and then I'll shut up......for now:

I attended grade school in the 1970s when we still had air raid drills and communism was far from an ideal that was looked at as being an option that just might be a darn good thing. No, communists were the "enemy" of the U.S. and any other "free" country. Communism was the enemy and the antithesis of freedom. ANY interaction with a communist country at that time was done with great suspicion. It's therefore been shocking and sad for me to see the U.S. become beholden to China monetarily to such a degree. Asking for and receiving loans from such a large and powerful communist country. Very dangerous IMO. "Yeah, but see commerce is global now". "China over time, saw the light and they're now like a part communist part capitalist society so they don't have that world domination attitude like they used to."

Uh huh.

Chris L

We spent to much until we ran out. Then we borrowed too much to keep spending and the available credit is running out. Now we are printing money so we can keep spending and that option may run out too!

Here is one thing we spend too much on:
Mish's Global Economic Trend Analysis