The cause of America’s Great Recession of December, 2007 is still unknown. The cause may well have been plural in nature. Multiple events may have been needed to bring down the world’s greatest economy.
Multiple events would make the cause of America’s 2007 great recession more difficult to identify, especially in the face of opposition.. Add the propaganda factor to the tools of the great recession promoters and their identity, although suspected, may not be conclusive.
Lets take a look at more data that may be related to America’s 2007 great recession. Lets visit the openthegovernment.org website where we can view a post titled: A Short History of Financial Deregulation in the United States. The timeline, on that website says a lot:
• 1978, Marquette vs. First of Omaha – Supreme Court allows banks to export the usury
laws of their home state nationwide and sets off a competitive wave of deregulation, resulting in the complete elimination of usury rate ceilings in South Dakota and Delaware, among others.
• 1980, Depository Institutions Deregulation and Monetary Control Act – Legislation increases deposit insurance from $40,000 to $100,000, authorizes new authority to thrift
institutions, and calls for the complete phase-out of interest rate ceilings on deposit accounts.
• 1982, Garn-St. Germain Depository Institutions Act – Bill deregulates thrifts almost entirely, allowing commercial lending and providing for a new account to compete with
money market mutual funds. This was a Reagan administration initiative that passed with strong bi-partisan support.
• 1987, FSLIC Insolvency – GAO declares the deposit insurance fund of the savings and loan industry to be insolvent as a result of mounting institutional failures.
• 1989, Financial Institutions Reform and Recovery Act – Act abolishes the Federal Home…[…]
You may note that the timeline starts real close to 1980. America did not get into real financial trouble until after the neocons gained control of the Republican party and America’s treasury. One would need to go back to 1929 to see the irresponsible financial behavior of the 1980 neocons.
No other political party intentionally wrecked America in order to ensure a complete restart. And to ensure a difficult to impossible recovery, the neocons fought, tooth and nail, to keep the unemployed unemployed. Several big businesses became vocal politicians. Others enjoyed the increased profits that came with the shedding of jobs. The 2007 great recession was going to be more successful than the 1929 Great Depression. The 1980 “Republicans” were not going to allow themselves to make the “mistakes” of 1929. The 1980 “Republicans” were going to fight democratic attempts at returning America to normal. So what was their goal?
The neocons knew how their party was able to gain, 25% of America’s income for the top 1% of America’s income earners. They accomplished that in 1929. But in 1980, the neocons knew the 1929 income distribution had changed considerably.
By 1980, the 25% of America’s income, gained by the top 1% in 1929 decreased significantly. The Democrat’s recovery from the Republican party’s Great Depression caused the top 1% earnings to decrease from 25% down to 10%. And with the top 1% down to 10% of America’s income, the masses were earning enough money to pay the mortgages and buy expensive household goods. And America’s economy was good. Listen:
Third-quarter growth of 7.2 percent is strongest in nearly two decades; will job growth follow?
October 30, 2003: 5:47 PM EST
By Mark Gongloff, CNN/Money Staff Writer
America’s economy was fine in early 2003 and so was Iraq. But the year, 2003, was a busy year for America’s 2003 President. Iraq and America’s economy were stable and a target for the neocons.
Both the economy and Iraq fell victim to the neocons’ performance standards. For Iraq, the Bush team produced an innocent citizen killing war(many Americans thought the allied force too small). And for America the neocons produced a great recession. Both performances were typical neocon. Both were train-wrecks.
The Gramm-Leach-Bliley act(1999) removed the constraints that the 1930’s Democrats and the Glass-Steagall Act placed on banks. Banks went back into the domain they loved. Banks went back into the high-risk big money area. And later we saw this:
A Rise in Wealth for the Wealthy; Declines for the Lower 93%
An Uneven Recovery, 2009-2011
And the neocons welcomed America back to the condition of the top 1% gaining 25% of America’s income. And America(the do gooders) may not be any the wiser?