November 27th, 2011 
rdftxet Question by Semi – Super: Is the Federal Reserve to blame for this economic crisis?
Bubbles can not be produced without abundant money supply. This was the case with the dot com boom and the housing bubble.
What exactly is the federal reserve good for?
Best answer:
Answer by a bush family member
No, much of the “abundant” supply of money that fueled both the internet bubble and the housing bubble came from overseas.
The housing bubble was created by Clinton, ACORN, Rubin and others pushing banks to give loans to people who could not afford them.
http://www.frbsf.org/publications/economics/letter/2006/el2006-30a.gif
In 1997 Clinton “actively sponsored ” risky home loans :
“”…rapid growth in affordable-loan programs and subprime lending…”
“The growth in these [special loan] programs has been actively sponsored by the Clinton administration ”
“The currently strong housing market is due in part to the initiation of a wide variety of affordable home-loan programs. These programs are intended to benefit low-income and minority households and neighborhoods through more flexible underwriting policies. These policies include low-downpayment requirements, higher acceptable ratios of debt payment to income, the use of alternative credit history information such as records of payments for rent and utilities, flexible employment standards, and reduced cash reserve requirements. The growth in these programs has been actively sponsored by the *** Clinton administration *** in a concerted effort to raise home-ownership rates.”
Mortgage Banking [News] – Aug 1, 1997
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Who elected them anyway???
Why should a stuffed shirt determine my standard of living?
What are they good for?
You will find out next year when you pay $ 20 for a Happy Meal due to hyperinflation.
There are many reasons we’re in this economic mess and the Federal Reserve under the leadership of Greenspan was one of the main reasons. Greenspan lowered the interest rates incredibly low. This along with the Republicans deregulating the financial industry and the Democrats pushing lenders to loan money to more disadvantage people created the housing bubble. But the housing bubble is only the engine, the fuel behind it are the credit default swaps that were created and abused by Wall Street because there was no oversight. Basically people at the top screwed us at the bottom. It’s not just one party or one branch of the Government, it’s a mix of everyone at the top. But most of them are out of public sight now.
YES it is to blame for a constant debt only forces slavery adn we will be in that situation for decades to come if we dont end it now meaning the fed reserve. Its not even legal. The federal reserve is the modern age slavery and thats all it is…….
The low interest rate may have been part of the reason for the housing bubble but they did not make the banks trade credit default swaps and derivatives on over priced houses. which is why the banks became insolvent. Fannie and Freddy held half of the mortgages, but did not lose nearly as much as the private mortgage markets.