Study | China – Not Wall Street – Caused 2008 Crisis: Changing Fortunes – How China’s Boom Caused the Financial Crisis

China – Not Wall Street – Caused 2008 Crisis: Changing Fortunes – How China’s Boom Caused the Financial Crisis

Happen to be reading some “news” over at CNBC’s website and came across the following article…

China—Not Wall Street—Caused 2008 Crisis: Study

Thought the global financial crisis in 2008 was caused by subprime bonds, collateralized debt obligations (CDOs) and other Wall Street engineering? Think again.

According to a new study, China, not Wall Street bankers, was responsible for the global crisis and the ensuing recession (learn more).

The study from the Erasmus Research Institute of Management said the saving frenzy of the Chinese created the cheap money, which fueled the U.S. housing bubble and its collapse.

Heleen Mees, writer of the study and adjunct associate professor at the NYU Wagner Graduate School of Public Service, said that exotic mortgage products could hardly have been the cause of the U.S. housing market bubble and its ultimate collapse.

According to the study, mortgages with those special features — like mortgage-backed securities (learn more) and CDOs (learn more) — accounted for less than five percent of the total number of new mortgages from 2000 to 2006.

The article then goes on to state…

The study also argued that Ben Bernanke, chairman of the Fed, set the world up for the Great Recession by providing the “intellectual backing for the aggressive rate cuts in the early 2000s.”

So, I guess China DOES control the US, if you believe the study.

Speaking of the study, we happened to find a copy and embedded it below.

Check it out. We’re still not convinced that China was the cause of the crisis.

The dissertation below includes five academic papers that – one way or the other – all relate to China.

The first paper delivers “proof” for the central thesis of this thesis, which is that China’s boom caused the 2008 financial crisis and ensuing recession.




Changing Fortunes – How China’s Boom Caused the Financial Crisis

8 Responses to “Study | China – Not Wall Street – Caused 2008 Crisis: Changing Fortunes – How China’s Boom Caused the Financial Crisis”
  1. Delga says:

    I hope nobody takes this message as an offense…

    In order for people to understand, you have had lived the experience by yourself. I lost a $ 10 million/year manufacturing facility.

    “Our” studies don’t blame China, China was never at fault, but people needs to study this gruesome event that started all the way back to 1988 – 89 and indeed, it was the root to the financial crisis… Tiananmen Square.

    China was at the brink of a revolution, although there’s no data, it is been said that 8 thousand people was massacre in Tiananmen Square.

    China needed to save their communist regime, therefore they created a 25 year plan to re-structure China’s working forced. In the process, they send hoards of engineers to Mexico and Canada to learn how the “maquiladora’s system” worked. The implemented the plan and if you craft the number, they are just right in time.

    They learned about the easy way to bribe the whores in Washington, they hire the traitors (lobbyist) to bribe the whores from congress and they succeeded. At least 10 of the biggest manufacturing associations (Textiles – Bedding – Wood Manufacturing among others) got together and sent (our own lobbyists) our own reply to Bush. We were no match with the money and the whores from Washington sold themselves lowering the import quotas from 40% to 3%. That event put American manufacturing 30% above all imports from China.

    So, China did an excellent job to bribe the idiots from Washington who demonstrated their inability to negotiate with their counterparts. After a full year of sending warning to the biggest idiot in America, (Bush), after he walked out of the White House he wrote in his book…”I did not see it coming”…of course, when you mix arrogance and stupidity you can destroy a country.

    Bottom line, Germany and France did not succumb to the cheap prices from China. Their deal is: you buy from me $ 1.00 and I’ll buy from you $ 1.00. Therefore, today, the Federal Government has to keep the 1% happy; Apple, Hewlett Packard, G & E, and the Kobe Bryant and Lebron James.

    The rest is history…yes the Housing Holocaust played a big role on the foreclosure crisis, but if I have not lost my company, chances are that I would have 400 people working and in the process they would be paying their mortgages.

    We can write a book to have a better interpretation my friends, but China play the game the USA gave them. Blame your congress and the biggest idiot on earth…Mr. George W Bush, HE WAS TOLD A MILLION TIMES…”DON’T DO IT”…HE GAVE US THE FINGER!!!


  2. oldhand says:

    I doubt anyone has read it. It’s 171 pages that I won’t read.

  3. valgur says:

    Beyond stupidity!

  4. sarah says:

    Exactly. This is Bankster crapola. CNBC’s “reporting” or in this case, a baseless, long on assumption effort to re-write history, shouldn’t come as any surprise. Read some of the commentary:

  5. stripes says:

    Just want to add, this is why we have strict property laws that date all the way back to the Magna Carta that protect our property rights from the foreigners taking America over without ever firing a shot. The U.S.SUPREME COURT agrees.

  6. stripes says:

    Wall Street sold investments in their empty bag of tricks all over the globe in many ways. I read an article that said Russia and China “bought into” the GSE’s scam and were shareholders/bondholders in their fraud. Russia advised China to dump their “investments.” Russia supposedly dumped theirs but China did not. Its more garbage in they are trying to sell us. Time for us to dump their trash. This is more deception to cover up for Wall Streets fraud. We The People never borrowed any money from China or any of these countries. WE THE PEOPLE paid for everything at the ORIGINATION FRAUD via the TRUST OF THE PEOPLES MONEY…THE U.S. TREASURY. The FOREIGNERS invested in WALL STREETS casino and got paid well for it while it lasted. They all need to be told their investments crapped out, they invested in gambling, that is all.

  7. Good Plan! Blame the Chinese! The first thing out of a little child’s mouth! It’s Billy’s fault! I’m not to blame! …………………….. Shure….. I’ll believe this…………. and building seven fell down all by

  8. Sharon says:

    I don’t believe this report. I’m sorry but banksters that never lent any money packaged loans into securitized trusts and because they knew they would fail they bet against them. And they packaged the same loan multiple times. It was American greed that caused this mess and although China’s monetary policy is neurotic I don’t think we can blame them for our mess. They make products you can touch, we make products that have no use except to enrich the banksters and destroy our economy.

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