9 ways the financial crisis still hurts

The bank bailouts 5 years ago saved the financial system from collapse. In many ways the economy is much better now -- but in some critical ones, deep problems remain.

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108Comments
Sep 20, 2013 7:42PM
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The reason it feels like there has been no recovery is because there has been no recovery.   With the exception of the stock market, which is being propped up by the Fed, almost every other metric you look at over the last decade is worse than when Obama took office.

 

And I'll update just to give a few:

 

Average household income down over 4%

Employment participation rate at 1970's levels.

Over 70% of jobs that have been created are part time.

The real unemployment rate is well over 10%

The number of new houses being built is only one third the number prior to the meltdown.

Gas is almost double (and over double in some locations) than when Obama took office.  That's DOUBLE in 5 years.

And anyone who believes the real inflation rate is under 3%, like the government tells you,  is delusional.

....just to name a few.

 

Oh, and an additional update because I left out a few other things:

 

More Americans in poverty under Obama.

More Americans on food stamps under Obama, and that number has doubled too in his time in office.

More Americans on welfare under Obama.

 

You can try and make this administration look good all you want, but the facts are that almost everything is going in the wrong direction precisely because of this administration.  There has been no recovery.  I stand by that statement.

 

So, for those who give a thumbs down, bring on your data and prove me wrong.   If you just leave a thumbs down but can't quite seem to figure out where my facts are wrong, as well as leave a reply that proves me wrong, then your vote is as empty as your head.

Sep 20, 2013 7:39PM
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You forgot the impact of the non-existent interest on savings .  Retired folks were planning on that interest as income. Not only did Wall Street take care of the average person's  IRA but the fed is punishing the cash holders who did not do the market. but The rich get richer the poor get poorer.  Sad state of affairs with the income gap in this country.  The boards of the companies that pay the CEO's the ridiculous income all need to be replaced.  I think they are on each others board to keep the pilfering in the family so to speak.
Sep 20, 2013 8:24PM
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Obama is a dick why would anyone defend him or his failed positions?
Sep 21, 2013 11:49AM
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There is no growth, no hope in Obama's America.

Thanks for Fing the middle class you POS.

Sep 21, 2013 9:22AM
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The  worlds economy has changed since the bailout of 08 its never going back to the previous levels of employment or free market capitalism.

Sep 21, 2013 8:20AM
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The truth is liberals caused the Great Recession by attempting to legislate equality. 

Just read this to understand:

From foundation to failure, Democrats were
responsible for almost every facet of our government’s
intrusion into the housing market. Roosevelt’s National
Housing Act of 1934 laid the foundation for HUD and
created Fannie Mae. Johnson’s Great Society created
HUD. Carter’s Community Reinvestment Act encouraged
banks to loan to low and moderate income individuals.
Clinton upgraded Carter’s Community Reinvestment Act
and turned it into one of the most damaging banking
reforms in our history. Clinton crafted The National
Homeownership Strategy with the goal of lifting
homeownership to 67.5% by the year 2000. Clinton, it what
was his biggest mistake, also granted Fannie and Freddie
a housing credit for buying subprime loans. In 1995,
President Bill Clinton's HUD agreed to let Fannie and
Freddie get affordable-housing credit for buying subprime
securities that included loans to low-income borrowers.
The author of Boston Federal Reserve Bank Study
on mortgage lending, the match credited with starting the
subprime fire, Alicia Munnell a far left leaning Democrat.
Those who fought tooth and nail under Clinton to ensure
his ambitious homeownership goals were met, James A.
Johnson, Barney Frank, Janet Reno, Andrew Cuomo,
Franklin Raines, Chris Dodd, Maxine Waters – all
Democrats. Lest we not forget the wealth distributing
Community Organizers who, to this very day continue to
extort money from the racist banks, all far left Democrats.
And those who carry the mantle of the Clinton’s initiatives –
Eric Holder, Thomas Perez ,Richard Cordray, Tim
Geithner, Nancy Pelosi and the most famous community
organizer, Barack Obama, you guessed it – liberals
Many will conclude the books intent is to divert part
of the responsibility away from Wall Street and the many
banks and mortgage originators that played a pivotal role in
the Great Recession. It’s not. Investments banks and
mortgage originators took advantage of the current climate
crafted by Clinton. However, greed has been a part of Wall
Street since its inception. It’s important to remember that
mortgage backed securities were government created
financially engineered instruments. Had the lending
standards not been reduced by the Community
Reinvestment Act, had there been no homeownership
strategy nor had there been any credit given to Freddie and
Fannie to purchase subprime mortgages, there wouldn’t
have been subprime meltdown. We could reach back
further in history and conclude that without the Democrat’s
intervention in the housing market there would have never
been subprime.
The CRA is not about community development; it is,
essentially, affirmative action in lending. Trillions in loans
are now to be made not on the basis of whether they can
be paid back but to meet CRA goals. This is precisely what
we need to get away from.
As long as the CRA is around, extortionist
community organizers in concert with left wing socialist
engineers in government will continue to bleed banks of
capital for their own housing agendas, all of which will be
funded by the American Tax Payer. There is only one
solution, get the US government out of housing all together.
We simply can’t afford another Democratic disaster.

Sep 21, 2013 10:26AM
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The economy is worse now than in 2008.  Wages are down; prices are up.  Unemployment and underemployment is up and incredibly long-term.  Lower worker participation rates

Statistics  which show a slightly increasing GDP hide the fact that 95% of new income created during this "recovery" has gone to the top 1%.  That is wealth redistribution from the citizens to the biggest corporations and wealthiest owners thereof.  That is why the stock market has soared.  Uncle Sam has helped big busn steal from the citizens.,  

 

Sep 20, 2013 7:48PM
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This is hilarious!  How many "pundits" (aka MSNBC "plants) are there?  They are as "snake oil" as the bum in office..see a correlation there?  Are you blind!  Next "pundit", please.  Incredible!
Sep 21, 2013 7:43PM
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Does the author of this article really expect to convince anyone with an intelligence level above her shoe size that the stock market has "fully rebounded," when Wall Street has been playing with trillions of fiat money? 

The typical American household has been and continues to be in recession, if not depression.  The number of poor and individuals on food stamps, on long term unemployment compensation, and job seekers choosing to simply give up looking for work are at an all time high.

Talk about a journalistic lack of credibility...................... 

Sep 21, 2013 8:10AM
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It Still hurts because the govt is lying. No surprise really. 

May 2009 – The Angelides Commission

The Financial Crisis Inquiry Commission (FCIC) is a
ten-member commission appointed by the United States
government with the goal of investigating the causes of the
financial crisis of 2007–2010. The Commission has been
nicknamed the Angelides Commission after the liberal
chairman, Phil Angelides. Chairman Angelides dismisses
any questions about CRA.
Banks reported delinquency rates ranging from 5%
to 50% on loans made pursuant to their merger-related
commitments. (CRA Commitments) Yet the FCIC refused
to investigate the more than 300 CRA agreements that
banks and community organizers entered into before the
subprime bubble burst. Despite repeated requests by
Commissioner Peter Wallison, the panel never examined
the performance of the trillions in loan commitments.
"These commitments were generally promises by
financial institutions to lend," claimed FCIC Chairman Phil
Angelides, and they weren't necessarily fulfilled. The
University of Connecticut tracked $1 trillion in loan
commitments pledged since 1993 and found that by 2000
the banks had made well over $600 billion of the loans.
Why would Chairman Angelides steer blame away from the
CRA? Angelides was a big fan of the CRA. When he was
California state treasurer from 1999 to 2007, he steered
billions in state funds into unsafe CRA mortgages
securitized by Freddie Mac. At the time, Greenlining
(Community Advocate Extortionists) advised Angelides on
where to invest California state funds, even providing him
with its own CRA report card on good and bad banks. He
has also personally benefited from CRA projects brokered
by his real estate development firms, according to The
Great American Bank Robbery.
Greenlining also worked behind the scenes with the
Democrat-led Financial Crisis Inquiry Commission (FCIC),
which misled the public by whitewashing the CRA's role in
71
the crisis. The dishonesty in its final report, now in
bookstores, is breathtaking, from its twisting and censoring
of key facts to its shameless revising of history. One could
see why the head of the laughable FCIC might be a little
biased about the CRA’s involvement. Chairman Angelides
was chosen by Pelosi and Reed.
Sep 23, 2013 7:02AM
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It is worse than the article portrays.  Unemployment and part-time employment and underemployment are all both excessive and long-term.  Prices of necessities like food and utilities have skyrocketed while food quality has become abysmal. Lower worker participation.  More real hunger with many poor people not being able to get food stamps while some who don't need them get them.

 

Sep 21, 2013 1:05PM
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This recovery is just awesome. Jimmy Carter days all over again.

Sep 21, 2013 5:09PM
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Before the crisis the Main Street economy was in a shambles, and the Top 10% economy was exploding. Main Street was scared and tricked into allowing the biggest heist of the people's wealth ever perpetrated against Citizens by a privately owned Banking Cartel (the Fed) enabled by corrupt government.

The people were duped and are suffering under an economy which has grown much worse. I would be remiss not to mention that the Top 10%, Wall Street manipulators, Corporate American profiteers, and ALL the Banking Czars are doing better then they could have ever imagined.

There is [only 'one' reason] why there is no recovery and my fellow Americans are hurting worse than ever... corrupt oppressive government.

Sep 21, 2013 2:55AM
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I have a house, and payments on a house and car, friend, renter, no payments, parties  all the time. needs money always, ask me, like welfare people, dragging everyone down with them, new phone new this, but don't own anything. needs to stop.can afford it don't buy it.
Sep 21, 2013 11:43AM
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"Over 80% of sub-prime mortgages were given out by private banks"

Of course they were, Fannie and Freddie don' t hand out loans, they buy them. 

And... guess who held 75% of all those subprime loans in 2008? 

Right - Freddie and Fannie. 
Sep 21, 2013 12:07PM
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"So what we ended up is known as BANK DEREGULATION!!! "

Can you explain how trillions of dollars in loans ended up in Fannie and Freddie's coffers under "bank deregulation" 

by the way, banks couldn't deregulate without passing out affirmative action loans.  Clinton made sure Greenspan was on board with his socialism. you get that right? if banks wanted to expand, merge... etc... they needed Fed approval. 
Sep 23, 2013 2:06PM
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Terrible report. No mention at all of the miserable interest rates you can get on savings. You almost have to pay the banks to keep your money. If you factor in inflation & the income taxes on the little you do get you wind up in the hole.
Sep 23, 2013 7:09AM
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Like a bandage on a wound that just won't heal.
Sep 23, 2013 1:55PM
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Is "Aimee" delusional?

 

"The stock market ... has fully rebounded ..."  It has cost $18 TRILLION printing of counterfeit money under the form of QE 1,2,3, ad nauseum to produce a ONE trillion dollars of "improvement."  18 for 1 is NOT an improvement!

 

"The job market has stabilized..."  IF the same number of jobs still existed that existed 2/2009 the unemployment rate would still be 11%+.

 

"... and the housing market is witnessing signs of an upswing." Houses that are selling are being sold for CASH from foreign investors - or" flippers" preparing to re-crash the market. 

 

DELUSIONAL ...  fool's gold .... a bridge in Brooklyn for sale! 

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