What caused the 2008 crisis and why it wasn’t the free market.
I just heard an idiot say the free market caused the 2008 crisis, now I will tell you what caused the 2008 crisis and why it’s not the free market:
First of all banks, banks are not free market, our banking system is socialist, the central bank fixes the interest rate while it should be a market price. Why do banks even exist now? Money is government controlled too, we don’t need them to store our gold anymore, money now is digital, it could be stored on a government website under your id and that’s it, and the only other thing banks do is give loans, something anyone else could do if you didn’t need a banking license to do it. So today’s banks only exist thanks to government regulations, not to the free market. And who do you think invented sub prime loans, and forced banks to give them? The Clinton administration, the ‘affordable housing plan’ forced all those non free market banks to keep at least 50% of their loan portfolio in subprime loans, this obviously created a bubble for housing and raised prices (duh if you give loans to everyone to buy houses demand for houses go up and prices go up, it’s obvious as fuck, they go up even more if you make regulations that make it harder to expand the supply of houses, like building permits). And when that bubble fucked everything who bailed out the banks? I’m 100% sure it was not the free market. Now, literally all the agents involved in this crisis (fiat money, banks, subprime loans) exist only because of government regulation, how the fuck can it be the free market’s fault? This crisis was the government’s “affordable housing plan” making houses a lot less affordable, and government with their cronies the government regulated banks stealing from the people and then getting bailed out by the same government that justifies their existance, that’s all, no free market was involved in the 2008 crisis.
Article from r/Libertarian: For a Free Society