On Tue, 14 Jun 2011 15:32:07 -0600, Canuck57
wrote:

On 14/06/2011 12:36 AM, wrote:
On Tue, 14 Jun 2011 00:52:13 -0400, wrote:

On Mon, 13 Jun 2011 17:43:03 -0400, wrote:

then why have the richest 1% gotten so much bigger?

Because government tax policies and import policies made it a lot more
profitable to make things offshore and import them.
That started in the 90s (GHW Bush/Clinton)
Then you had the Clinton era deregulation that made the idea of money
making money more attractive than actually making anything.
Most of that Clinton era business boom was just an illusion (fraud,
phony profits and irrational exuberance in the stock market) and the
GW Bush boom was all based on borrowing money that didn't exist.

The people who got rich were the ones who knew when to cash in before
both bubbles popped.

So, Greenspan was an oracle? Not really...

http://www.nytimes.com/2008/10/24/bu...y/24panel.html

Greenspan had it partially right but the cause was government and US Fed
ponzi policies.

Lending money at below market rates caused it. There hasn't been
supply/demand in lending/borrowing for some time. The idea that
government sets the rates IS the problem and the market was not allowed
this correction.

If it was the market driving, too much borrowing would be offset by a
shortage of cash to lend and rates would go up. But the US Fed/Congress
flooded the market with cheap undervalued money. Causing the market for
debt to economy to inflate, and then someone wanted to be paid.

Still is a problem too. Government needs to borrow real money and stop
the devaluing money print NOW before a major currency run starts.

Thus, Greenspan screwed up. Try reading for comprehension next time.