It's The Federal Government STUPID! Who Do YOU BLame For The Economic Colapse???

[paul black]

Precluding the morgage industry colapse, was the auto industry colapse and before the auto industry collapse occurred, we find the real culprit to the economic collapse over all. The assult on small business that started some years ago but really began to take shape in 2004. At that time the secondary market was at satisfactory levels, with all satifying loans at 90% much higher than lenders thought at the beginning of the secondary explorations. Not only in mortgages but also in auto industry and credit card installments.People that when through bankruptcy where shown to be excellent credit candidates as they did not want to face it again.

So to blame these industries is simply wrong, miss leading and damaging to the free market system once again.

The blame falls on the Federal Government, over barring tax code, and the formula to attack small business. Tax are one thing that is very hard to keep up with, and then lets not forget cost of book keeping accounting and protection. Then the uncertainty of tax increases, with 67000 pages laying out the tax code there is no way to properly conduct small business projection.Between 2005 and 2006, the US lost 8,900 farms (a little more than 1 farm per hour).http://www.sustainabletable.org/issues/familyfarms/, that effects the entire family, not just the farmer and it effects the community of these farmers.Worse is the overall attack on small business, by 2009 741000 small businesses are in closure or bankruptcy that is 2000 day every day none stop, just like the small farmer, they have employees and families are effected.

This attack on small farming and small business is easy to see just Google it and study it.

Subprime barrowers were the first to feel the attacks, and the first to foreclose and repo, as the attack continues, the economy slows and prime loans begin to fall, job loss began with with the attack on small business, the results unfold in order.

Private sector mortgages are failing and loans in general not public sector, the result is a much weekend private sector un able to qualify for loans, which is an essential for private sector not the public sector

If the Federal Government can now blame the lenders and borrowers, instead of there dirty Tax codes and regulations for the destruction of the economy, they just won and you never saw what really happened.


The following is just a few statistics I have found, Showing 721,00 business closers and business bankruptcies in 2009, that is approximately 2000 a day. Equaling 1½ per minute. Not one per hr. this alarming and not a joke!!! Small firms:
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 44 percent of total U.S. private payroll.
• Generated 65 percent of net new jobs over the past 17 years.
• Create more than half of the nonfarm private GDP.
• Hire 43 percent of high tech workers (scientists, engineers, computer programmers, and others).
• Are 52 percent home-based and 2 percent franchises.
• Made up 97.5 percent of all identified exporters and produced 31 percent of export value in FY 2008.
• Produce 13 times more patents per employee than large patenting firms.

Source: Office of Advocacy estimates based on data from the U.S. Dept. of Commerce, Census Bureau, and trends from the U.S. Dept. of Labor, Bureau of Labor Statistics, Business Employment Dynamics.

[paul black]

Well Phil, I agree that Democrats have no business forcing lenders to lend to minorities the refuse to assimilate in (their term) into the American way of life as preached by leaders in their communities such as REV R., and then when it don't work they are owed (victims) but again I will suggest to you that it is not the cause of the economic crisis or the Mortgage crisis. As I mentioned in my post the mortgage crisis is a result of small business collapse and layoffs. Mortgage companies had made proper adjustments for the obvious, but they also were well aware if the economy took a turn and layoffs increased, it was apparent what would happen. Blame in the wrong direction is not going to fix the real problem and the longer it is ignored for a popular belief such as yours, it will continue to worsen. In your scenario, Dems screwed up and Republicans were weak and yes I agree totally with your analogy how ever to miss the real cause is just a distraction. Tax law is being used by the progressives to destroy the engine and the creator of jobs in America the small business. Capitalism sponsors Freedom and Government sponsors dependency. It is no secret to those listening to progressives, and leaders around the world, "if you want to destroy America then defeat it's capitalism, Hugo Chavez's main goal while he is in power, Think back to the Gas crisis, all things lead to attack on Capitalism in the US, and while we are busy not seeing the attack, we are doomed. 741000 small businesses last yr. care to guess this yr.