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<blockquote data-quote="vantexan" data-source="post: 5399286" data-attributes="member: 24302"><p>Really started with the dot.com bubble bursting.&nbsp; The last man standing after the NASDAQ cratered in 2002 was real estate.&nbsp; Money started pouring into it and a couple of Democratic Congressmen, Frank and Dodd, who were beholden to donors, particularly Countrywide Mortgage, started pushing banks to lend to those with poor credit because as they said it was unfair that the poor, especially minorities, were missing out on the run up in equity in real estate.&nbsp; Wall Street started bundling these bad mortgages into securities that were traded on the stock exchanges.&nbsp; Developed complex derivatives(don&#039;t have a clue how they work)that were highly leveraged.&nbsp; When the market started stalling for a lack of new buyers and the buyers with bad credit started defaulting it all came crashing down.&nbsp; Lehman Brothers went under and the government decided the entire system would collapse if they didn&#039;t step in.&nbsp; You pointed out the QE that followed.&nbsp; That delayed the inevitable reckoning which has been accelerated due to the government panicking and greatly increased the money supply in the last two years.&nbsp; And now we&#039;re in a damned if you do/don&#039;t scenario.&nbsp; But as bad as it seems the U.S. is in a much better position than Europe or China.&nbsp; But there&#039;s some pain ahead.</p></blockquote><p></p>

[QUOTE="vantexan, post: 5399286, member: 24302"] Really started with the dot.com bubble bursting. The last man standing after the NASDAQ cratered in 2002 was real estate. Money started pouring into it and a couple of Democratic Congressmen, Frank and Dodd, who were beholden to donors, particularly Countrywide Mortgage, started pushing banks to lend to those with poor credit because as they said it was unfair that the poor, especially minorities, were missing out on the run up in equity in real estate. Wall Street started bundling these bad mortgages into securities that were traded on the stock exchanges. Developed complex derivatives(don't have a clue how they work)that were highly leveraged. When the market started stalling for a lack of new buyers and the buyers with bad credit started defaulting it all came crashing down. Lehman Brothers went under and the government decided the entire system would collapse if they didn't step in. You pointed out the QE that followed. That delayed the inevitable reckoning which has been accelerated due to the government panicking and greatly increased the money supply in the last two years. And now we're in a damned if you do/don't scenario. But as bad as it seems the U.S. is in a much better position than Europe or China. But there's some pain ahead. [/QUOTE]

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