There is not a word about Bill Clinton's 1990 Affordable Housing Act, which is in my opinion the socialist root of this problem:
1. It forced banks to change house lending rules in a way that created substantially higher risk of default from the borrowers (compared to the historical risk levels). If a bank did not agree to this they would lose access to government contracts; 2. (1) above was the primary reason for the artificial rising in home price levels (not the sudden increase in house spending by the top 1% followed by the middle class out of desire of priviledge - the pre-1990 lending rules would have prevented so many people's getting easy money to bid on houses); 3. (1) above created indeed a higher percentage of defaults, as expected, but banks and those buying mortgage packages miscalculated based on century old formulas that did not account for the behavior of those who for the first time in history could buy a 200K house with 5000 of their own money. This behavior - high default rate among this category - is the socialist element that started the dominoes falling because 4. There were just too many defaulters who thought they were entitled to spend on consumer goods equity from the homes they were never going to pay back the mortgage for, with the end result that 5. Banks wound up losing the most which made all taxpayers (future generations included) the biggest losers - it would have been a much bigger disaster to let banks fail, though a shorter one which could have hurt just our generation and not that of our children.
The fact that Bill Clinton's socialist policies were not mentioned is very telling given the many hints at equalitarianism as a solution throughout the movie.
Lastly, the crisis that started in 2008 made many people who lost part of the asset (the percentage of the house they had already paid off) because they suddenly lost salaries they would have continue to pay mortgages from. They are also victims, not the poorest ones who saw the golden egg of home ownership as a temporary huge credit they could spend from for a while.
All details you are given in the movie would not have been sufficient to create this catastrophic effect in the absence of the socialist policy that started it. Don't get me wrong, I would rather go out for a beer with Bill Clinton than with any other president, but socialist policies, past and future, will continue to diminish our country's economic power and the well being of each of us.
1. It forced banks to change house lending rules in a way that created substantially higher risk of default from the borrowers (compared to the historical risk levels). If a bank did not agree to this they would lose access to government contracts; 2. (1) above was the primary reason for the artificial rising in home price levels (not the sudden increase in house spending by the top 1% followed by the middle class out of desire of priviledge - the pre-1990 lending rules would have prevented so many people's getting easy money to bid on houses); 3. (1) above created indeed a higher percentage of defaults, as expected, but banks and those buying mortgage packages miscalculated based on century old formulas that did not account for the behavior of those who for the first time in history could buy a 200K house with 5000 of their own money. This behavior - high default rate among this category - is the socialist element that started the dominoes falling because 4. There were just too many defaulters who thought they were entitled to spend on consumer goods equity from the homes they were never going to pay back the mortgage for, with the end result that 5. Banks wound up losing the most which made all taxpayers (future generations included) the biggest losers - it would have been a much bigger disaster to let banks fail, though a shorter one which could have hurt just our generation and not that of our children.
The fact that Bill Clinton's socialist policies were not mentioned is very telling given the many hints at equalitarianism as a solution throughout the movie.
Lastly, the crisis that started in 2008 made many people who lost part of the asset (the percentage of the house they had already paid off) because they suddenly lost salaries they would have continue to pay mortgages from. They are also victims, not the poorest ones who saw the golden egg of home ownership as a temporary huge credit they could spend from for a while.
All details you are given in the movie would not have been sufficient to create this catastrophic effect in the absence of the socialist policy that started it. Don't get me wrong, I would rather go out for a beer with Bill Clinton than with any other president, but socialist policies, past and future, will continue to diminish our country's economic power and the well being of each of us.