Obama was a constitutional law professor from 1992-2004(give or take)State legislator, 1997–2004,U.S. Senator, from 2005----now
In the early 2000's to 2007 or so we went from 37 trillion dollars invested and saved to 74 trillion dollars. That's more money than anyone combined spends in one year, countries, candy bars, everything.
All that extra money had to go somewhere. Housing was booming, and it was a good place to put all of that money. In fact there wasn't enough room there to put it.
They were buying the loans "mortgages"(investing) from banks then turning around and selling them on equity of the loan. I don't know who ened up with it last.
Anyways they couldn't get enough of them to sell, the class A group mainly. There are different classes that they sell A B C D the A being the best they(you and me) will pay back that loan. Some how they started mixing them together because they more or less ran out of them. So you had people investing trillions of dollars into class C thinking that they were class A loans. People started to default(remember last year on the rate increase after so many years were everyone lost their home).
Then everything started to go to hell.
That is how I understand the housing market mess. With the 700 Billion dollar buy out.
Then last week.
Market Share bonds(I think correct me if I'm wrong on my naming) borrow money for banks every day. In the BILLIONS. Now there are two sides that make this work. The banks and then the lenders(don't remember the name for that if you could help cool).
So they borrow say 10 million dollars, then they pay it back that day(at the end of the day) with interest. The banks are making the interest from the loans from you and spending a little to borrow the money for you. That week the Market Share bonds dropped one point. It has not done that in say 40 years.
People flipped out and moved their money to the other side to do the lending. Then what happened was that the banks almost could not borrow the money that it needs to do daily business, because to many players went to the other team(just like cod4 when it's 10 players against 2). Bush put a hold on this to stop it from going any further, but the experts said if they would of let it go just one more day the whole market would of locked up.
Now part of this 700billion dollars is going back into the system to fix this issue. That's why they were talking about a domino affect with all the banks crashing if one of them failed.
IMO what we should of done in the war is just go in and bomb the living shit out of them. Leave, and let them rebuild. If we don't like what they rebuilt, bomb the shit of them again. Everyone in the world wants to get ahead, and if kept doing that to them they would eventually stop all the craziness.
edit I have changed my view on this! not the way to handle it
They have been fighting for thousands of years, why do we think we can stop it by going in and controlling their lives? We as a nation are not the first ones to go in and try to change their governments and people.
When the oil runs up in those countries, they will have noting to offer to us.
