time.com — "There is no doubt that the pressure on the U.S. financial system [that led to the financial crisis] came from abroad," says Caballero, who is the head of MIT's economics department. "Foreign investors created a demand for assets that was difficult for the U.S. financial sector to produce."
Jan 16, 2010 View in Crawl 4
lostinseganetJan 16, 2010
No it was the derivatives. Property and assets were brought and sold to barely succeed or fail. The derivative is a person or company who bet any amount they want on success or fail. it is easier to fail than succeed. They companies sold items to foreigners saying they would succeed but knowing they would fail. Then they bet against they very things they sold. For profits for them selves. So long as thing were doing better the fail was acceptable. Things went to hell. now people can see what they hell went wrong. So now they cant sell the same crap to foreigners who now know a little better. The crooks had ALOT of ethos...
cjurdaneJan 16, 2010
Oh please! america also makes most of its money thanks to globalization.
Closed AccountJan 16, 2010
China basically stopped all trades during the Qing dynasty and cut off communications with the rest of the world because they thought it was best to not deal with foreigners, but when the West invaded China in the early 1800s they were literally fighting guns with horses and spears, China was so behind on technology that the whole country almost collapsed during the invasion.Same thing will happen if America thinks it can be self-sufficient, because we're far from it and probably never will.
zenmojoJan 16, 2010
Natavist nonsense. So foreigners enabled us to ruin our own economy? Great.
nbluthJan 17, 2010
"Economics isn't as mystifying as the media makes it out to be, you know"Grammar isn't as mystifying as the media makes it out to be, you know.
lxlqlxlJan 19, 2010
@Sabin - You think the mortgages were low in price? I think they got as much as they could out of it.. Squeezed that piggy bank dry. If they put everything upfront as in this is your real interest rate. Then I doubt the figures would be as high as they are today. Sure some people would still have done it but not as many. How can I say that? Well look at it this way. Look at how the banks operated. If they thought for one second that telling people the real rate would get more revenue then they would have done that. They had to use marketing tricks and sales tactics that would make the shadiest of used car salesman envious to seal the deal.