PANIC OF 2008

Happy 2009!
Glad 2008 is behind us.

What really caused the panic of 2008.
We are told what to believe.

"House prices rose too high, driven by irresponsible lending and borrowing. The bubble burst, pulling down consumer spending and economies around the world." The Christian Science Monitor 12/31/08

But that is just the story we are told.
If you look beneath you see something different.
Things were going along well until the actual panic hit in September.
The panic was set off by the US treasury and remarks from Paulson.

But even deeper causes are behind the mess.

The rules were changed.
The rules were changed!

Two important rules were changed and that changed everything.
As if rules don't matter?!

Financial institutions were required to mark to market illiquid assets resulting in technical insolvencies.

Short sellers were able to systematically drive companies down because of the removal of the uptick rule in short selling.

Those two changes are what really led to the panic of 2008.
But you won't hear that from the big boys who call the shots.