The Iraq war and the credit crisis?

Question

Do you think there is a link between the Iraq war and the credit crisis/crunch? Apparently around the time the war began the Federal Reserve lowered interest rates to keep the economy stimulated. Is there a viable link? Could you please provide sources i.e. books, websites?

Answer 1

Well, I know a bit about it due to I am in debate and all for school and our topic was Iraq but to give you a source I would have to pull out a big Ugly red Binder they is very heavy..hah

But yes it does though in  fact  have to do with each other, due to the threatening of higher prices on a barrel of oil, during the war and all the talk between other countries like Iran, Some UN sanction were ignored on the middle-eastern side of things thus more threatening of raising prices of this and that, eventually it happened and America needed something to fall back on...didn't work at all....

h**l I could proly write a book about it. You could to, due to all the **** that was looped together in all the mess of terrorist actions war ect.

Answer 2

Everyone (including the so called experts) have some sort of idea. Everything first started back in 2000, then when the Twin Towers went down it started the downward roll. I am not an expert by any means, but I've seen what's been going on, the economic status effects EVERYTHING. Are you refering to the credit crisis as to the economy or to something else?

Answer 3

Ding we've got a winner...When 9/11 occurred and the tech bubble burstGreenspan lowered the Fed fund rates to one percent.  Having kept the rates to low for to long...he allowed another asset bubble (housing) to form.  People saw the low interest rates and were givin these complex ARM's and subprime loans (im sure some lenders didnt even understand the terms of ARM's).  Everything was good when interest rates were low, but when the Fed started raising interest rates, the mortagage loans increased as well.  Then, people started defaulting on there loans, investment banks and even stock brokers had these toxic mortagaes in there portfolio's without enough diversification...so yes in a sense Greenspan enabled the housing bubble...but don't expect him to admit it.