Why is America in a depression in July, 2011?

Originally posted by brindle
The United States was fine when george bush was in office.This moron has destroyed the country.

The reason the current president is in such a mess is because your mate George and his crones had such a raging party. Talk about a hangover....

Originally posted by sir_slide

Originally posted by brindle
The United States was fine when george bush was in office.This moron has destroyed the country.

The reason the current president is in such a mess is because your mate George and his crones had such a raging party. Talk about a hangover....

Actually if we go back to the beginning of this depression/recession that started in 2008 the source is from the early Clinton administration. Clinton signed a bill that made it easier for individuals who didn't have the means of payment to be granted loans, primarily home mortgages. This bill made it easier by requiring less information to qualify for the loans. Before this bill an individual would have been required to give more accurate information about income and spending and current debt, however, after the bill was passed an individual could leave out information like credit card debt and other forms of debt that the bill deemed unecessary for the acquisition of a mortgage loan. This directly lead to many home foreclosures which in turn create a more volatile market system. So, personally, I'm tire of knownots making bogus claims about bush, you people need to realize that it takes two to tango. The two I'm referring to are the house and congress.

Aside from that, the question was posed about how the government owes money to an entity it created. Look at it this way, the US debt is not really government debt, its debt to the US government. By this I mean that the debt is really just debt allowed by the government. See, each organisation the government creates basically operates separately from one another. These entities have employees, assets, and debt. The debt listed as federal debt is the combined debt of all of these federal entities that were given permission to spend by the government. To do this spending the government prints and distributes cash, or as with the stimulus packs just tell several major banks to add some heroes onto certain accounts. Our government could technically forgive this debt but if it did then the banks would have to release this cash for use in the market. This would then cause massive overnight inflation. So the best way to do it is to slowly forgive the debt and slowly release the money into the system, currently we don't need to put the markets into shock with a massive cash overdose. Then Noone would have any money except the extremely wealty. Then the markets would have no chance at recovery because Noone would be able to buy anything.