Another nonsense is how sub-prime caused the recession. This idea simply does not add up.
It seems that way because politicians, the financial sector and the media tell us and also some of the first financial products to default was sub-prime. US sub-prime lender, Countrywide, went under in 2007. But it only seems that way.
Wikipedia, under its mortgage market section, sites an AP report that states that the US sub-prime market was valued at $1.3 trillion. Yet, a US government inspector in July 2009 warned people that the total bailout could be $24 trillion,
So, how does a $1.3 trillion sub-prime market cause possible debts of $24 trillion? Do the maths.
The financial sector have tied mortgage debt and indeed government debt to their criminal gambling. So, a collapse in one would lead to a collapse in the other. But this was not the simple workings of finance. This is crony capitalism – and we could end up paying for it.
The financial sector is leading us up the garden path. It could lead to a severe global depression.
Wikipedia, Subprime mortgage crisis, http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-19
TARP Special Investigator Says Bailout Total May Reach $23.7 Trillion, http://globaleconomicanalysis.blogspot.co.uk/2009/07/tarp-special-investigator-says-bailout.html#kPzikgeVWZGWPhDa.99