Ten years after Lehman Brothers collapsed, it’s important to understand that the real root of the Great Recession wasn’t a banking crisis. It was the growing imbalance between consumer spending and total output – brought on by stagnant wages and widening inequality.
That imbalance is back. Watch your wallets.
https://www.rawstory.com/2018/09/watch-wallets-next-crash-coming/
Yes, we know that periods of strong economic growth and job creation always result in recession. Right?
BTW, for the hundredth time, the last recession was the result of the left manufacturing the "Homeownership is a right" conundrum. When you make loans to enough people who can't pay them back, sooner or later, you will have a problem.
Yes, that's right, & apparently the banks are doing the same thing again because Trump has rescinded all the banking regulations put in place by Obama that were put in place specifically to prevent another crash from happening again. You won't be able to blame the next one on liberals, but that won't stop you from trying.
please give us some more krugman quotes....always so accurate
I think MOJO is referring to that train wreck "Dodd-Frank" which did absolutely nothing but waste money.
No Mojo, banks don't loan money that's unlikely to be paid back unless they are forced to do so. That's why capitalism works. But when they are accused of "racist" lending practices, and sanctioned for redlining hi risk neighborhoods and community organizers, like Obama, organize protests and use every trick in the book to coerce them, when it becomes more expensive to not make stupid loans, then they start making them.
But I wonder, was there some back room agreement somewhere, where the banks were promised some kind of bailout if/when it hit the fan?