The Pre-Depression Economy
We talk about the 1920s as the “Roaring 20s,” a time of legendary economic prosperity. If you were a member of the monied elite of the time, or within striking distance of joining their ranks if you got the right breaks, then yes, it was all champagne, flappers and F. Scott Fitzgerald and your yacht was rising on a tide of increasing stock values that no one thought would end. On the other hand, if you a regular lower or middle class person, you saw work come and go, wages stagnate, and the divide between the “have nots”, “the haves” and the “have mores” increase exponentially.
And all that was before the whole house of cards came crashing down. Today, instead of the stock market, it was the mortgage market. Once more, the problem came down to government regulation. In this case, the Clinton Administration and congressional Democrats pushed banks into making risky—read sub-prime—loans... [Read Full Article]